House Report 107-333 - NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

[House Report 107-333]
[From the U.S. Government Publishing Office]

107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-333
_______________________________________________________________________

NATIONAL DEFENSE AUTHORIZATION

ACT FOR FISCAL YEAR 2002

__________

CONFERENCE REPORT

to accompany

S. 1438

December 12, 2001.--Ordered to be printed

__________

U.S. GOVERNMENT PRINTING OFFICE
76-910 STAR WASHINGTON : 2002

C O N T E N T S

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Page
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE....... 387
Summary Statement of Conference Action....................... 387
Summary Table of Authorizations.............................. 387
Congressional Defense Committees............................. 394
Committee Reports............................................ 394
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS................. 394
Title I--Procurement............................................. 394
Procurement overview................................. 394
Management reform initiatives........................ 396
Aircraft Procurement, Army--Overview................. 396
Missile Procurement, Army--Overview.................. 400
Procurement of Weapons and Tracked Combat Vehicles,
Army--Overview..................................... 404
Procurement of Ammunition, Army--Overview............ 409
Other Procurement, Army--Overview.................... 415
Chemical Agents and Munitions Destruction, Army--
Overview........................................... 432
Aircraft Procurement, Navy--Overview................. 434
Weapons Procurement, Navy--Overview.................. 440
Procurement of Ammunition, Navy and Marine Corps--
Overview........................................... 445
Shipbuilding and Conversion, Navy--Overview.......... 449
Other Procurement, Navy--Overview.................... 452
Procurement, Marine Corps--Overview.................. 466
Aircraft Procurement, Air Force--Overview............ 473
High altitude endurance unmanned aerial vehicle...... 482
Missile Procurement, Air Force--Overview............. 482
Procurement of Ammunition, Air Force--Overview....... 486
Other Procurement, Air Force--Overview............... 489
Procurement, Defense-Wide--Overview.................. 498
Chemical Agents and Munitions Destruction, Defense--
Overview........................................... 505
Items of Special Interest.................................... 507
Acquisition programs at the National Reconnaissance
Office............................................. 507
Acquisition programs at the National Security Agency. 508
Airborne signals intelligence recapitalization and
modernization...................................... 509
Arleigh Burke-class destroyer procurement............ 510
Attack submarine force structure study............... 510
Legislative Provisions Adopted............................... 511
Subtitle A--Authorization of Appropriations.............. 511
Authorization of appropriations (secs. 101-107)...... 511
Chemical agents and munitions destruction, Defense
(sec. 106)......................................... 511
Subtitle B--Army Programs................................ 511
Repeal of limitations on bunker defeat munitions
program (sec. 111)................................. 511
Extension of pilot program on sales of manufactured
articles and services of certain Army industrial
facilities without regard to availability from
domestic sources (sec. 112)........................ 512
Limitations on acquisition of interim armored
vehicles and deployment of interim brigade combat
teams (sec. 113)................................... 512
Subtitle C--Navy Programs................................ 513
Virginia class submarine program (sec. 121).......... 513
Multiyear procurement authority for F/A-18E/F
aircraft engines (sec. 122)........................ 513
V-22 Osprey aircraft program (sec. 123).............. 514
Report on status of V-22 Osprey aircraft before
resumption of flight testing (sec. 124)............ 514
Subtitle D--Air Force Programs........................... 514
Multiyear procurement authority for C-17 aircraft
(sec. 131)......................................... 514
Legislative Provisions Not Adopted........................... 515
Additional amount for Shipbuilding and Conversion,
Navy............................................... 515
Destruction of existing stockpile of lethal chemical
agents and munitions............................... 515
Extension of multiyear contract for Family of Medium
Tactical Vehicles.................................. 515
Procurement of additional M291 skin decontamination
kits............................................... 515
Title II--Research, Development, Test, and Evaluation............ 516
Research, Development, Test, and Evaluation overview. 516
Management reform initiatives........................ 518
Research, Development, Test and Evaluation Army--
Overview........................................... 518
Army missile defense technology...................... 535
Comanche............................................. 535
Rapid acquisition program for transformation......... 536
Tactical high energy laser........................... 536
Thermionics technology............................... 536
Research, Development, Test and Evaluation, Navy--
Overview........................................... 536
Follow-on support jamming aircraft................... 557
Future destroyer program............................. 557
Littoral support craft-experimental.................. 557
Research, Development, Test and Evaluation, Air
Force--Overview.................................... 558
Joint Strike Fighter................................. 574
Low cost launch technologies......................... 574
Special aerospace materials and materials
manufacturing processes............................ 575
Research, Development, Test and Evaluation, Defense-
Wide--Overview..................................... 575
Arrow missile defense system......................... 592
Ballistic missile defense advanced technology........ 592
Common database asset for biological security........ 592
Items of Special Interest.................................... 593
Navy research and development budget exhibits........ 593
Legislative Provisions Adopted............................... 593
Subtitle A--Authorization of Appropriations.............. 593
Authorization of appropriations (secs. 201-202)...... 593
Supplemental authorization of appropriations for
fiscal year 2001 for Research, Development, Test,
and Evaluation Defense-Wide (sec. 203)............. 593
Subtitle B--Program Requirements, Restrictions, and
Limitations............................................ 594
Naval surface fire support assessment (sec. 211)..... 594
Collaborative program for development of advanced
radar systems (sec. 212)........................... 594
Repeal of limitations on total cost of engineering
and manufacturing development for F-22 aircraft
program (sec. 213)................................. 595
Joint biological defense program (sec. 214).......... 595
Cooperative Department of Defense-Department of
Veterans Affairs Medical Research Program (sec.
215)............................................... 595
C-5 aircraft reliability enhancement and reengining
program (sec. 216)................................. 595
Subtitle C--Ballistic Missile Defense.................... 596
Transfer of responsibility for procurement for
missile defense programs from Ballistic Missile
Defense Organization to military departments (sec.
231)............................................... 596
Program elements for Ballistic Missile Defense
Organization (sec. 232)............................ 596
Ballistic missile defense budget justification....... 597
Support of ballistic missile defense activities of
the Department of Defense by the National Defense
Laboratories of the Department of Energy (sec. 233) 598
Missile defense testing initiative (sec. 234)........ 599
Construction of test bed facilities for missile
defense system (sec. 235).......................... 599
Subtitle D--Air Force Science and Technology for the 21st
Century................................................ 599
Air Force science and technology for the 21st Century
Act (sec. 251-252)................................. 599
Study and report on effectiveness of Air Force
science and technology program changes (sec. 253).. 600
Subtitle E--Other Matters................................ 600
Establishment of unmanned aerial vehicle joint
operational test bed system (sec. 261)............. 600
Demonstration project to increase small business and
university participation in Office of Naval
Research efforts to extend benefits of science and
technology research to fleet (sec. 262)............ 600
Communication of safety concerns from operational
test and evaluation officials to program managers
(sec. 263)......................................... 601
Legislative Provisions Not Adopted........................... 601
Big Crow............................................. 601
C-5 aircraft modernization........................... 601
Enhanced scramjet mixing............................. 601
Management responsibility for Navy mine
countermeasures programs........................... 601
Review of alternatives to the V-22 Osprey aircraft... 602
Special operations forces command, control,
communications, computers, and intelligence systems
threat warning and situational awareness program... 602
Technology ``Challenge'' program..................... 602
Technology transition initiative..................... 602
Title III--Operation and Maintenance............................. 602
Overview............................................. 602
Management reform initiatives........................ 633
Combating terrorism initiative....................... 633
Commercial imagery to support military requirements.. 634
Legislative Provisions Adopted............................... 634
Subtitle A--Authorization of Appropriations.............. 634
Authorization of appropriations (secs. 301-302)...... 634
Armed Forces Retirement Home (sec. 303).............. 634
Transfer from National Defense Stockpile Transaction
Fund (sec. 304).................................... 635
Funds for renovation of Department of Veterans
Affairs facilities adjacent to Naval Training
Center Great Lakes, Illinois (sec. 305)............ 635
Defense Language Institute Foreign Language Center
expanded Arabic language program (sec. 306)........ 635
Subtitle B--Environmental Provisions..................... 635
Inventory of unexploded ordnance, discarded military
munitions, and munitions constituents at defense
sites (other than operational ranges) (sec. 311)... 635
Establishment of new program element for remediation
of unexploded ordnance, discarded military
munitions, and munitions constituents (sec. 312)... 636
Assessment of environmental remediation of unexploded
ordnance, discarded military munitions, and
munitions constituents (sec. 313).................. 636
Conformity of surety authority under environmental
restoration program with surety authority under
CERCLA (sec. 314).................................. 636
Elimination of annual report on contractor
reimbursement for costs of environmental response
actions (sec. 315)................................. 636
Pilot program for sale of air pollution emission
reduction incentives (sec. 316).................... 636
Department of Defense energy efficiency program (sec.
317)............................................... 637
Procurement of alternative fueled and hybrid light
duty trucks (sec. 318)............................. 637
Reimbursement of Environmental Protection Agency for
certain response costs in connection with Hooper
Sands site, South Berwick, Maine (sec. 319)........ 637
River mitigation studies (sec. 320).................. 637
Subtitle C--Commissaries and Nonappropriated Fund
Instrumentalities...................................... 638
Commissary benefits for new members of the Ready
Reserve (sec. 331)................................. 638
Reimbursement for use of commissary facilities by
military departments for purposes other than
commissary sales (sec. 332)........................ 638
Public releases of commercially valuable information
commissary stores (sec. 333)....................... 638
Rebate agreements with procedures of foods provided
under special supplemental food program (sec. 334). 638
Civil recovery for nonappropriated fund
instrumentality costs related to shoplifting (sec.
335)............................................... 639
Subtitle D--Workforce and Depot Issues................... 639
Revision of authority to waive limitation on
performance of depot-level maintenance (sec. 341).. 639
Exclusion of certain expenditures from limitation on
private sector performance of depot-level
maintenance (sec. 342)............................. 639
Protections for purchasers of articles and services
manufactured or performed by working-capital funded
industrial facilities of the Department of Defense
(sec. 343)......................................... 639
Revision of deadline for annual report on commercial
and industrial activities (sec. 344)............... 640
Pilot manpower reporting system in Department of the
Army (sec. 345).................................... 640
Development of Army Workload and Performance System
and Wholesale Logistics Modernization Program (sec.
346)............................................... 640
Subtitle E--Defense Dependents Education................. 641
Assistance to local educational agencies that benefit
dependents of members of the armed forces and
Department of Defense civilian employees (sec. 351) 641
Impact aid for children with severe disabilities
(sec. 352)......................................... 641
Availability of auxiliary services of defense
dependents' education system for dependents who are
home school students (sec. 353).................... 641
Comptroller General study of adequacy of compensation
provided for teachers in the Department of Defense
overseas dependents' schools (sec. 354)............ 641
Subtitle F--Other Matters................................ 642
Availability of excess defense personal property to
support Department of Veterans Affairs initiative
to assist homeless veterans (sec. 361)............. 642
Incremental implementation of Navy-Marine Corps
Intranet contract (sec. 362)....................... 642
Comptroller General Study and Report of National
Guard Distributive Training Technology Project
(sec. 363)......................................... 643
Reauthorization of warranty claims recovery pilot
program (sec. 364)................................. 644
Evaluation of current demonstration programs to
improve quality of personal property shipments of
members (sec. 365)................................. 644
Sense of Congress regarding security to be provided
at 2002 Winter Olympic Games (sec. 366)............ 644
Legislative Provisions Not Adopted....................... 645
Applicability of core logistics capability
requirements to nuclear aircraft carriers.......... 645
Authorization of additional funds.................... 645
Consequence management training...................... 645
Critical infrastructure protection initiative of the
Navy............................................... 645
Environmental restoration, Formerly Used Defense
Sites.............................................. 645
Expansion of entities eligible for loan, gift, and
exchange of documents, historical artifacts, and
obsolete combat materiel........................... 646
Funding for land forces information operations
sustainment........................................ 646
Improvements in instrumentation and targets at Army
live-fire training ranges.......................... 646
Limitation on workforce reviews...................... 646
Title IV--Military Personnel Authorizations...................... 647
Legislative Provisions Adopted............................... 647
Subtitle A--Active Forces................................ 647
End strengths for active forces (sec. 401)........... 647
Revision in permanent end strength minimum levels
(sec. 402)......................................... 647
Increase in senior enlisted active duty grade limit
for Navy, Marine Corps, and Air Force (sec. 403)... 647
Subtitle B--Reserve Forces............................... 647
End strengths for Selected Reserve (sec. 411)........ 647
End strengths for reserves on active duty in support
of the reserves (sec. 412)......................... 648
End strengths for military technicians (dual status
sec. 413).......................................... 648
Fiscal year 2002 limitation on non-dual status
technicians (sec. 414)............................. 649
Limitations on numbers of reserve personnel serving
on active duty or full-time National Guard duty in
certain grades for administration of reserve
components (sec. 415).............................. 649
Subtitle C--Other Matters Relating to Personnel Strengths 649
Administration of end strengths (sec. 421)........... 649
Active duty end strength exemption for National Guard
and reserve personnel performing funeral honors
functions (sec. 422)............................... 649
Subtitle D--Authorization of Appropriations.............. 650
Authorization of appropriations for military
personnel (sec. 431)............................... 650
Legislative Provisions Not Adopted........................... 650
Increase in authorized strengths for Air Force
officers on active duty in the grade of major...... 650
Strength and grade limitation accounting for reserve
component members on active duty in support of a
contingency operation.............................. 650
Title V--Military Personnel Policy............................... 651
Legislative Provisions Adopted............................... 651
Subtitle A--Officer Personnel Policy..................... 651
Enhanced flexibility for management of senior general
and flag officer positions (sec. 501).............. 651
Certifications of satisfactory performance for
retirement of officers in grades above major
general and rear admiral (sec. 502)................ 651
Review of actions of selection boards (sec. 503)..... 652
Temporary reduction of time-in-grade requirement for
eligibility for promotion for certain active-duty
list officers in grades of first lieutenant and
lieutenant (junior grade) (sec. 504)............... 652
Authority for promotion without selection board
consideration for all fully qualified officers in
grade of first lieutenant or lieutenant (junior
grade) in the Navy (sec. 505)...................... 652
Authority to adjust date of rank of certain
promotions delayed by reason of unusual
circumstances (sec. 506)........................... 653
Authority for limited extension of medical deferment
of mandatory retirement or separation (sec. 507)... 653
Authority for limited extension on active duty of
members subject to mandatory retirement or
separation (sec. 508).............................. 653
Exemption from certain administrative limitations for
retired officers ordered to active duty as defense
or service attaches (sec. 509)..................... 653
Officer in charge of United States Navy Band (sec.
510)............................................... 654
Subtitle B--Reserve Component Personnel Policy........... 654
Placement on active-duty list of certain reserve
officers on active duty for a period of three years
or less (sec. 511)................................. 654
Exception to baccalaureate degree requirement for
appointment of reserve officers to grades above
first lieutenant (sec. 512)........................ 654
Improved disability benefits for certain reserve
component members (sec. 513)....................... 654
Time-in-grade requirement for reserve component
officers retired with a nonservice-connected
disability (sec. 514).............................. 655
Equal treatment of reserves and full-time active duty
members for purposes of managing personnel
deployments (sec. 515)............................. 655
Modification of physical examination requirements for
members of the Individual Ready Reserve (sec. 516). 655
Retirement of reserve members without requirement for
formal application or request (sec. 517)........... 655
Space-required travel by reserves on military
aircraft (sec. 518)................................ 655
Payment of Federal Employee Health Benefit Program
premiums for certain reservists called to active
duty in support of contingency operations (sec.
519)............................................... 656
Subtitle C--Joint Specialty Officers and Joint
Professional Military Education........................ 656
Nominations and promotions for joint specialty
officers (sec. 521)................................ 656
Joint duty credit (sec. 522)......................... 656
Retroactive joint service credit for duty in certain
joint task forces (sec. 523)....................... 656
Revision to annual report on joint officer management
(sec. 524)......................................... 657
Requirement for selection for joint specialty before
promotion to general of flag officer grade (sec.
525)............................................... 657
Independent study of joint officer management and
joint professional military education reforms (sec.
526)............................................... 658
Professional development education (sec. 527)........ 658
Authority for National Defense University to enroll
certain private sector civilians (sec. 528)........ 658
Continuation of reserve component professional
military education test (sec. 529)................. 658
Subtitle D--Military Education and Training.............. 658
Defense Language Institute Foreign Language Center
(sec. 531)......................................... 658
Authority for the Marine Corps University to award
degree of master of strategic studies (sec. 532)... 659
Foreign students attending the service academies
(sec. 533)......................................... 659
Increase in maximum age for appointment as a cadet or
midshipman in Senior Reserve Officers' Training
Corps scholar ship programs (sec. 534)............. 659
Participation of regular enlisted members of the
armed forces in Senior Reserve Officers' Training
Corps program (sec. 535)........................... 659
Authority to modify the service obligation of certain
ROTC cadets in military junior colleges receiving
financial assistance (sec. 536).................... 660
Repeal of limitation on number of Junior Reserve
Officers' Training Corps units (sec. 537).......... 660
Modification of nurse officer candidate accession
program restriction on students attending
educational institutions with Senior Reserve
Officers' Training programs (sec. 538)............. 660
Reserve health professionals stipend program
expansion (sec. 539)............................... 660
Housing allowance for the chaplain for the Corps of
Cadets at the United States Military Academy (sec.
540)............................................... 660
Subtitle E-- Recruiting and Accession Programs........... 660
18-month enlistment pilot program (sec. 541)......... 660
Improved benefits under the Army College First
program (sec. 542)................................. 661
Correction and extension of certain Army recruiting
pilot program authorities (sec. 543)............... 661
Military recruiter access to secondary school
students (sec. 544)................................ 661
Permanent authority for use of military recruiting
funds for certain expenses at Department of Defense
recruiting functions (sec. 545).................... 662
Report on health and disability benefits for pre-
accession training and education programs (sec.
546)............................................... 662
Subtitle F--Decorations, Awards, and Posthumous
Commission............................................. 662
Authority for award of the Medal of Honor to Humbert
R. Versace, Jon E. Swanson, and Ben L. Salomon for
valor (sec. 551)................................... 662
Review regarding award of Medal of Honor to certain
Jewish American and Hispanic American war veterans
(sec. 552)......................................... 662
Authority to issue duplicate Medals of Honor and to
replace stolen military decorations (sec. 553)..... 663
Retroactive Medal of Honor special pension (sec. 554) 663
Waiver of time limitations for award of certain
decorations to certain persons (sec. 555).......... 663
Sense of Congress on issuance of certain medals (sec.
556)............................................... 663
Sense of Congress on development of a more
comprehensive, uniform policy for the award of
decorations to military and civilian personnel of
the Department of Defense (sec. 557)............... 664
Posthumous Army commission in the grade of captain in
the Chaplains Corps to Ella E. Gibson for service
as chaplain of the First Wisconsin Heavy Artillery
Regiment during the Civil War (sec. 558)........... 664
Subtitle G--Funeral Honors Duty.......................... 664
Participation of military retirees in funeral honors
details (sec. 561)................................. 664
Funeral honors duty performed by reserve and guard
members to be treated as inactive-duty training for
certain purposes (sec. 562)........................ 664
Use of military leave for funeral honors duty by
reserve members and National Guardsman (sec. 563).. 664
Authority to provide appropriate articles of clothing
as a civilian uniform for civilians participating
in funeral honor details (sec. 564)................ 665
Subtitle H--Military Spouses and Family Members.......... 665
Improved financial and other assistance to military
spouses for job training and education (sec. 571).. 665
Persons authorized to be included in surveys of
military families regarding federal programs (sec.
572)............................................... 665
Clarification of treatment of classified information
concerning persons in a missing status (sec. 573).. 665
Transportation to annual meeting of next-of-kin of
persons unaccounted for from conflicts after World
War II (sec. 574).................................. 666
Amendments to charter of Defense Task Force on
Domestic Violence (sec. 575)....................... 666
Subtitle I--Military Justice and Legal Assistance Matters 666
Blood alcohol content limit for the offense under the
Uniform Code of Military Justice of drunken
operation of a vehicle, aircraft, or vessel (sec.
581)............................................... 666
Requirement that courts-martial consist of not less
than 12 members in capital cases (sec. 582)........ 666
Acceptance of voluntary legal assistance for the
civil affairs of members and former members of the
uniformed services and their dependents (sec. 583). 667
Subtitle J--Other Matters................................ 667
Congressionl review period for change in ground
combat exclusion policy (sec. 591)................. 667
Per diem allowance for lengthy or numerous
deployments (sec. 592)............................. 667
Clarification of disability severance pay computation
(sec. 593)......................................... 668
Transportation or storage of privately owned vehicles
on change or permanent station (sec. 594).......... 668
Repeal of requirement for final Comptroller General
report relating to Army end strength allocations
(sec. 595)......................................... 668
Continued Department of Defense administration of
National Guard Challenge Program and Department of
Defense STARBASE Program (sec. 596)................ 668
Report on Defense Science Board recommendation on
original appointments in regular grades for academy
graduates and certain other new officers (sec. 597) 669
Sense of Congress regarding the selection of officers
for recommendation for appointment as Commander,
United States Transportation Command (Sec. 598).... 669
Legislative Provisions Not Adopted........................... 670
Acceptance of fellowships, scholarships, or grants
for legal education of officer participating in the
Funded Legal Education Program..................... 670
Codification of requirement for regulations for
delivery of military personnel to civil authorities
when charged with certain offenses................. 670
Expanded application of reserve special selection
board.............................................. 670
Members of the National Guard Performing funeral
honors duty while in non-federal status............ 670
One-year extension of expiration data for certain
force management authorities....................... 671
Preparation for, participation in, and conduct of
athletic competitions by the National Guard and
members of the National Guard...................... 671
Right of convicted accused to request sentencing by
military judge..................................... 671
Title VI--Compensation and Other Personnel Benefits.............. 671
Items of Special Interest.................................... 671
Personal and Family financial management programs.... 671
Legislative Provisions Adopted............................... 672
Subtitle A--Pay and Allowances........................... 672
Increase in basic pay for fiscal year 2002 (sec. 601) 672
Basic pay rate for certain reserve commissioned
officers with prior service as an enlisted member
or warrant officer (sec. 602)...................... 672
Reserve component compensation for distributed
learning activities performed as inactive-duty
training (sec. 603)................................ 672
Subsistence allowances (sec. 604).................... 672
Eligibility for temporary housing allowance while in
travel or leave status between permanent duty
stations (sec. 605)................................ 673
Uniform allowance for officers (sec. 606)............ 673
Family separation allowance for members electing
unaccompanied tour by reason of health limitations
of dependents (sec. 607)........................... 673
Subtitle B--Bonuses and Special Incentive Pays........... 673
One-year extension of certain bonus and special pay
authorities for reserve forces (sec. 611).......... 673
One-year extension of certain bonus and special pay
authorities for nurse officer candidates,
registered nurses, and nurse anesthetists (sec.
612)............................................... 673
One-year extension of special pay and bonus
authorities (sec. 613-614)......................... 674
Hazardous duty pay for members of maritime visit,
board, search, and seizure teams (sec. 615)........ 674
Eligibility for certain career continuation bonuses
for early commitment to remain on active duty (sec.
616)............................................... 674
Secretarial discretion in prescribing submarine duty
incentive pay rates (sec. 617)..................... 674
Conforming accession bonus for dental offices
authority with authorities for other special pay
and bonus (sec. 618)............................... 674
Modification of eligibility requirements for
Individual Ready Reserve bonus for reenlistment,
enlistment, or extension of enlistment (sec. 619).. 675
Installation payment authority for 15 years career
status bonus (sec. 620)............................ 675
Accession bonus for new officers in critical skills
(sec. 621)......................................... 675
Education savings plan to encourage reenlistments and
extensions of service in critical specialities
(sec. 622)......................................... 675
Continuation of payment of special and incentive pay
at unreduced rates during stop loss periods (sec.
623)............................................... 675
Retroactive authorization for imminent danger pay for
service in connection with Operation Enduring
Freedom (sec. 624)................................. 675
Subtitle C--Travel and Transportation Allowances......... 676
Minimum per diem rate for travel and transportation
allowance for travel performed upon a change of
permanent station and certain other travel (sec.
631)............................................... 676
Eligibility for payment of subsistence expenses
associated with occupancy of temporary lodging
incident to reporting to first permanent duty
station (sec. 632)................................. 676
Reimbursement of members for mandatory pet quarantine
fees for household pets (sec. 633)................. 676
Increased weight allowance for transportation of
baggage and household effects for junior enlisted
members (sec. 634)................................. 676
Eligibility of additional members for dislocation
allowance (sec. 635)............................... 676
Partial dislocation allowance authorized for housing
moves ordered for government convenience (sec. 636) 677
Allowances for travel performed in connection with
members taking authorized leave between consecutive
overseas tours (sec. 637).......................... 677
Travel and transportation allowances for family
members to attend burial of a deceased member of
the uniformed services (sec. 638).................. 677
Funded student travel for foreign study under an
education program approved by a United States
school (sec. 639).................................. 677
Subtitle D--Retirement and Survivor Benefit Matters...... 678
Contingent authority for concurrent receipt of
military retired pay and veterans' disability
compensation and enhancement of special
compensation authority (sec. 641).................. 678
Survivor Benefit Plan annuities for surviving spouses
of members who die while on active duty and not
eligible for retirement (sec. 642)................. 678
Subtitle E--Other Matters................................ 678
Payment for unused leave in excess of 60 days accrued
by members of reserve components on active duty for
one year or less (sec. 651)........................ 678
Additional authority to provide assistance for
families of members of the armed forces (sec. 652). 679
Authorization of transitional compensation and
commissary and exchange benefits for dependents of
commissioned officers of the Public Health Service
and the National Oceanic and Atmospheric
Administration who are separated for dependent
abuse (sec. 653)................................... 679
Transfer of entitlement to educational assistance
under Montgomery GI Bill by members of the Armed
Forces with critical military skills (sec. 654).... 680
Legislative Provisions Not Adopted........................... 680
Career sea pay....................................... 680
Equal treatment of reservists performing inactive-
duty training for receipt of aviation career
incentive pay...................................... 680
Increase in basic allowance for housing in the United
States............................................. 680
Title VII--Health Care Provisions................................ 681
Legislative Provisions Adopted............................... 681
Subtitle A--Tricare Program Improvements................. 681
Sub-acute and long-term care program reform (sec.
701)............................................... 681
Prosthetics and hearing aids (sec. 702).............. 681
Durable medical equipment (sec. 703)................. 681
Rehabilitative therapy (sec. 704).................... 681
Report on mental health benefits (sec. 705).......... 681
Clarification of eligibility for reimbursement of
travel expenses of adult accompanying patient in
travel for specialty care (sec. 706)............... 681
TRICARE program limitations on payment rates for
institutional health care providers and on balance
billing by institutional and noninstitutional
health care providers (sec. 707)................... 682
Improvements in administration of the TRICARE program
(sec. 708)......................................... 682
Subtitle B--Senior Health Care........................... 682
Clarifications and improvements regarding the
Department of Defense Medicare-Eligible Retiree
Health Care Fund (sec. 711)........................ 682
Subtitle C--Studies and Reports.......................... 683
Comptroller General study of health care coverage of
members of the reserve components of the Armed
Forces and the National Guard (sec. 721)........... 683
Comptroller General study of adequacy and quality of
health care provided to women under the Defense
Health Program (sec. 722).......................... 683
Repeal of obsolete report requirement (sec. 723)..... 683
Comptroller General report on requirement to provide
screenings, physical examinations, and other care
for certain members (sec. 724)..................... 683
Subtitle D--Other Matters................................ 684
Prohibition against requiring military retirees to
receive health care solely through the Department
of Defense (sec. 731).............................. 684
Fees for trauma and other medical care provided to
civilians (sec. 732)............................... 684
Enhancement of medical product development (sec. 733) 684
Pilot program providing for Department of Veterans
Affairs support in the performance of separation
physical examinations (sec. 734)................... 685
Modification of prohibition on requirement of
nonavailability statement or preauthorization (sec.
735)............................................... 685
Transitional health care for members separated from
active duty (sec. 736)............................. 685
Two-year extension of health care management
demonstration program (sec. 737)................... 686
Joint DOD-VA pilot program for providing graduate
medical education and training for physicians (sec.
738)............................................... 686
Legislative Provisions Not Adopted........................... 686
Effective date....................................... 686
Title VIII--Acquisition Policy, Acquisition Management, and
Related Matters................................................ 686
Items of Special Interest.................................... 686
Management reform initiatives........................ 686
Legislative Provisions Adopted............................... 687
Subtitle A--Procurement Management and Administration.... 687
Management of procurement of services (sec. 801)..... 687
Savings goals for procurement of services (sec. 802). 687
Competition requirement for purchase of services
pursuant to multiple award contracts (sec. 803).... 688
Reports on maturity of technology at initiation of
Major Defense Acquisition Programs (sec. 804)...... 688
Subtitle B--Use of Preferred Sources..................... 689
Applicability of competition requirements to
purchases from a required source (sec. 811)........ 689
Extension of mentor-protege program (sec. 812)....... 689
Increase of assistance limitation regarding
Procurement Technical Assistance Program (sec. 813) 689
Subtitle C--Amendments to General Contracting
Authorities, Procedures, and Related Matters........... 689
Amendments to conform with administrative changes in
acquisition phase and milestone terminology and to make
related adjustments in certain requirements applicable
at milestone transition points (sec. 821).............. 689
Follow-on production contracts for products developed
pursuant to prototype projects (sec. 822).......... 690
One-year extension of program applying simplified
procedures to certain commercial items (sec. 823).. 690
Acquisition workforce qualifications (sec. 824)...... 690
Report on implementation of recommendations of the
Acquisition 2005 Task Force (sec. 825)............. 690
Subtitle D--Other Matters................................ 691
Identification of errors made by executive agencies
in payments to contractors and recovery of amounts
erroneously paid (sec. 831)........................ 691
Codification and modification of provision of law
known as the ``Berry Amendment'' (sec. 832)........ 691
Personal services contracts to be performed by
individuals or organizations abroad (sec. 833)..... 691
Requirements regarding insensitive munitions (sec.
834)............................................... 691
Inapplicability of limitation to small purchases of
miniature or instrument ball or roller bearings
under certain circumstances (sec. 835)............. 692
Temporary emergency procurement authority to
facilitate the defense against terrorism or
biological or chemical attack (sec. 836)........... 692
Legislative Provisions Not Adopted........................... 693
Consolidation of defense contracts................... 693
HUBzone small business concerns...................... 693
Small business procurement competition............... 693
Title IX--Department of Defense Organization and Management...... 693
Items of Special Interest.................................... 693
Organizational changes to the Office of the Secretary
of Defense......................................... 693
Legislative Provisions Adopted............................... 694
Subtitle A--Duties and Functions of Department of Defense
Officers............................................... 694
Deputy Under Secretary of Defense for Personnel and
Readiness (sec. 901)............................... 694
Sense of Congress on functions of new Office of Force
Transformation in the Office of the Secretary of
Defense (sec. 902)................................. 694
Suspension of reorganization of engineering and
technical authority policy within the Naval Sea
Systems Command pending report to congressional
committees (sec. 903).............................. 695
Subtitle B--Space Activities............................. 695
Space Activities (secs. 911-915)..................... 695
Subtitle C--Reports...................................... 698
Revised requirement for Chairman of the Joint Chiefs
of Staff to advise Secretary of Defense on the
assignment of roles and missions to the armed
forces (sec. 921).................................. 698
Revised requirements for content of annual report on
joint warfighting experimentation (sec. 922)....... 699
Repeal of requirement for one of three remaining
required reports on activities of Joint
Requirements Oversight Council (sec. 923).......... 699
Revised joint report on establishment of national
collaborative information analysis capability (sec.
924)............................................... 699
Subtitle D--Other Matters................................ 700
Conforming amendments relating to change of name of
Military Airlift Command to Air Mobility Command
(sec. 931)......................................... 700
Organizational realignment for Navy Director for
Expeditionary Warfare (sec. 932)................... 700
Legislative Provisions Not Adopted........................... 700
Reductions in acquisition and support workforce...... 700
Responsibility of the Under Secretary of the Air
Force for Acquisition of space launch vehicles and
space launch services.............................. 700
Title X--General Provisions...................................... 701
Counter-Drug Activities.............................. 701
National Guard Counter-drug activities............... 701
Operation Caper Focus................................ 701
Tethered Aerostat Radar System....................... 701
Items of Special Interest.................................... 701
Automobile Safety Program............................ 701
Legislative Provisions Adopted............................... 702
Subtitle A--Financial Matters............................ 702
Transfer authority (sec. 1001)....................... 702
Incorporation of classified annex (sec. 1002)........ 702
Authorization of supplemental appropriations for
fiscal year 2001 (sec. 1003)....................... 702
United States contribution to NATO common-funded
budgets in fiscal year 2002 (sec. 1004)............ 702
Limitation on funds for Bosnia and Kosovo
Peacekeeping Operations for fiscal year 2002 (sec.
1005).............................................. 703
Maximum amount for National Foreign Intelligence
Program (sec. 1006)................................ 703
Clarification of applicability of interest penalties
for late payment of interim payments due under
contracts for services (sec. 1007)................. 703
Reliability of Department of Defense financial
statements (sec. 1008)............................. 703
Financial Management Modernization Executive
Committee and financial feeder systems compliance
process (sec. 1009)................................ 704
Authorization of funds for ballistic missile defense
programs or combating terrorism programs of the
Department of Defense (sec. 1010).................. 704
Subtitle B--Naval Vessels and Shipyards.................. 704
Authority to transfer naval vessels to certain
foreign countries (sec. 1011)...................... 704
Sale of Glomar Explorer to the lessee (sec. 1012).... 705
Leasing of Navy ships for Universary National
Oceanographic Laboratory System (sec. 1013)........ 705
Increase in limitations on administrative authority
of the Navy to settle admiralty claims (sec. 1014). 705
Subtitle C--Counter-Drug Activities...................... 705
Extension and restatement of authority to provide
Department of Defense support for counter-drug
activities of other governmental agencies (sec.
1021).............................................. 705
Extension of reporting requirement regarding
Department of Defense expenditures to support
foreign counter-drug activities (sec. 1022)........ 706
Authority to transfer Tracker aircraft currently used
by Armed Forces for counter-drug purposes (sec.
1023).............................................. 706
Limitation on use of funds for operation of Tethered
Aerostat Radar System pending submission of
required report (sec. 1024)........................ 706
Subtitle D--Strategic Forces............................. 707
Repeal of limitation on retirement or dismantlement
of strategic nuclear delivery systems (sec. 1031).. 707
Air Force bomber force structure (sec. 1032)......... 707
Additional element for revised nuclear posture review
(sec. 1033)........................................ 707
Report on options for modernization and enhancement
of missile wing helicopter support (sec. 1034)..... 708
Subtitle E--Other Department of Defense Provisions....... 708
Secretary of Defense recommendation on need for
Department of Defense review of proposed federal
agency actions to consider possible impact on
national defense (sec. 1041)....................... 708
Department of Defense reports to Congress to be
accompanied by electronic version upon request
(sec. 1042)........................................ 708
Department of Defense gift authorities (sec. 1043)... 709
Acceleration of research, development, and production
of medical countermeasures for defense against
biological warfare agents (sec. 1044).............. 709
Chemical and biological protective equipment for
military personnel and civilian employees of the
Department of Defense (sec. 1045).................. 710
Sale of goods and services by Naval Magazine, Indian
Island, Alaska (sec. 1046)......................... 710
Report on procedures and guidelines for embarkation
of civilian guests on naval vessels for public
affairs purposes (sec. 1047)....................... 710
Technical and clerical amendments (sec. 1048)........ 711
Termination of referendum requirement regarding
continuation of military training on the island of
Vieques, Puerto Rico, and imposition of additional
conditions on closure of training range (sec. 1049) 711
Subtitle F--Other Matters................................ 712
Assistance for firefighters (sec. 1061).............. 712
Extension of times for Commission on the Future of
the United States Aerospace Industry to report and
to terminate (sec. 1062)........................... 712
Appropriations to Radiation Exposure Compensation
Trust Fund (sec. 1063)............................. 712
Waiver of vehicle weight limits during periods of
national emergency (sec. 1064)..................... 712
Repair, restoration, and preservation of Lafayette
Escadrille Memorial, Marnes-la-Coquette, France
(sec. 1065)........................................ 713
Legislative Provisions Not Adopted........................... 713
Action to promote national defense features program.. 713
Assignment of members to assist border patrol and
control............................................ 714
Authority to pay gratuity to members of the armed
forces and civilian employees of the United States
for slave labor performed for Japan during World
War II............................................. 714
Contingent authorization of appropriations........... 714
Demilitarization of significant military equipment... 714
Information and recommendations and congressional
reporting requirements applicable to the Department
of Defense......................................... 714
Reductions in authorizations of appropriations for
Department of Defense for management efficiencies.. 715
Release of restriction on use of certain vessels
previously authorized to be sold................... 715
Revision in types of excess naval vessels for which
approval by law is required for disposal to foreign
nations............................................ 715
Revision of annual report to Congress on National
Guard and reserve component equipment.............. 715
Sense of the Senate that the Secretary of the
Treasury should immediately issue savings bonds, to
be designated as ``Unity Bonds''................... 715
Transfer of Vietnam-era F-4 to non-profit museum..... 716
Title XI--Civilian Personnel..................................... 716
Legislative Provisions Adopted............................... 716
Subtitle A--Department of Defense Civilian Personnel..... 716
Personnel pay and qualifications authority for
Department of Defense Pentagon Reservation civilian
law enforcement and security force (sec. 1101)..... 716
Pilot program for payment of retraining expenses
(sec. 1102)........................................ 716
Authority of civilian employees to act as notaries
(sec. 1103)........................................ 716
Authority to appoint certain health care
professionals in the excepted service (sec. 1104).. 716
Subtitle B--Civilian Personnel Management Generally...... 717
Authority to provide hostile fire pay (sec. 1111).... 717
Payment of expenses to obtain professional
credentials (sec. 1112)............................ 717
Parity in establishment of wage schedules and rates
for prevailing rate employees (sec. 1113).......... 717
Modification of limitation on premium pay (sec. 1114) 717
Participation of personnel in technical standards
development activities (sec. 1115)................. 718
Retention of travel promotional items (sec. 1116).... 718
Applicability of certain laws to certain individuals
assigned to work in the Federal Government (sec.
1117).............................................. 718
Subtitle C--Intelligence Civilian Personnel.............. 718
Authority to increase maximum number of positions in
the Defense Intelligence Senior Executive Service
(sec. 1121)........................................ 718
Subtitle D--Matters Relating to Retirement............... 719
Improved portability of retirement coverage for
employees moving between civil service employment
and employment by nonapproporiated fund
instrumentalities (sec. 1131)...................... 719
Federal employment retirement credit for
nonappropriated fund instrumentality service (sec.
1132).............................................. 719
Modification of limitations on exercise of voluntary
separation incentive pay authority and voluntary
early retirement authority (sec. 1133)............. 719
Legislative Provisions Not Adopted........................... 719
Continued applicability of certain civil service
protections for employees integrated into the
National Imagery and Mapping Agency from the
Defense Mapping Agency............................. 719
Removal of requirement that granting civil service
compensatory time be based on amount of irregular
or occasional overtime work........................ 720
Undergraduate training program for employees of the
National Imagery and Mapping Agency................ 720
Use of common occupational and health standards as a
basis for differential payments made as a
consequence of exposure to asbestos................ 720
Title XII--Matters Relating to Other Nations..................... 720
Legislative Provisions Adopted............................... 720
Subtitle A--Matters Related to Arms control and
Monitoring............................................. 720
Clarification of authority to furnish nuclear test
monitoring equipment to foreign governments (sec.
1201).............................................. 720
Limitation on funding for Joint Data Exchange Center
in Moscow (sec. 1202).............................. 721
Support of United Nations-sponsored efforts to
inspect and monitor Iraqi weapons activities (sec.
1203).............................................. 721
Authority for employees of Federal Government
contractors to accompany chemical weapons
inspection teams at government-owned facilities
(sec. 1204)........................................ 721
Plan for securing nuclear weapons, material, and
expertise of the states of the former Soviet Union
(sec. 1205)........................................ 721
Subtitle B--Matters Relating to Allies and Friendly
Foreign Nations........................................ 722
Acquisition of logistical support for security forces
(sec. 1211)........................................ 722
Extension of authority for international cooperative
research and development projects (sec. 1212)...... 722
Cooperative agreements with foreign countries and
international organizations for reciprocal use of
test facilities (sec. 1213)........................ 723
Sense of Congress on allied defense burdensharing
(sec. 1214)........................................ 723
Subtitle C--Reports...................................... 723
Report on significant sales and transfers of military
hardware, expertise, and technology to the People's
Republic of China (sec. 1221)...................... 723
Repeal of requirement for reporting to Congress on
military deployments to Haiti (sec. 1222).......... 724
Report by comptroller General on provision of defense
articles, services, and military education and
training to foreign countries and international
organizations (sec. 1223).......................... 724
Legislative Provisions Not Adopted........................... 724
Limitation on number of military personnel in
Columbia........................................... 724
Title XIII--Cooperative Threat Reduction With States of the
Former Soviet Union............................................ 724
Legislative Provisions Adopted............................... 724
Specification of Cooperative Threat Reduction
programs and funds (sec. 1301)..................... 724
Funding allocations (sec. 1302)...................... 725
Limitation on use of funds until submission of
reports (sec. 1303)................................ 725
Requirement to consider use of revenue generated by
activities carried out under Cooperative Threat
Reduction programs (sec. 1304)..................... 725
Prohibition against use of funds for second wing of
fissile material storage facility (sec. 1305)...... 725
Prohibition against use of funds for certain
construction activities (sec. 1306)................ 726
Reports on activities and assistance under
Cooperative Threat Reduction programs (sec. 1307).. 726
Chemical weapons destruction (sec. 1308)............. 726
Additional matter in annual report on activities and
assistance under Cooperative Threat Reduction
programs (sec. 1309)............................... 727
Legislative Provisions Not Adopted........................... 727
Report on responsibility for carrying out Cooperative
Threat Reduction programs.......................... 727
Title XIV--Armed Forces Retirement Home.......................... 728
Legislative Provisions Adopted............................... 728
Amendment of Armed Forces Retirement Home Act of 1991
(sec. 1401)........................................ 728
Definitions (sec. 1402).............................. 728
Revision of authority establishing the Armed Forces
Retirement Home (sec. 1403)........................ 728
Chief Operating Officer (sec. 1404).................. 729
Residents of Retirement Home (sec. 1405)............. 729
Local boards of trustees (sec. 1406)................. 729
Directors, Deputy Directors, Associate Directors, and
staff of facilities (sec. 1407).................... 729
Disposition of effects of deceased persons and
unclaimed property (sec. 1408)..................... 729
Transitional provisions (sec. 1409).................. 729
Conforming and clerical amendments and repeals of
obsolete provisions (sec. 1410).................... 730
Legislative Provisions Not Adopted........................... 730
Amendments of other laws............................. 730
Title XV--Activities Relating to Combating Terrorism............. 730
Legislative Provisions Adopted............................... 730
Subtitle A--Increased Funding for Combating Terrorism.... 730
Authoriation of emergency appropriations under the
2001 Emergency Supplemental Appropriations Act for
Recovering From and Response to Terrorist Attacks
on the United States. (secs. 1501-1506)............ 730
Subtitle B--Policy Matters Relating to Combating
Terrorism.............................................. 731
Study and report on the role of the Department of
Defense with respect to homeland security (sec.
1511).............................................. 731
Combating Terrorism Readiness Initiatives Fund for
combatant commands (sec. 1512)..................... 732
Conveyances of equipment and related materials loaned
to state and local governments as assistance for
emergency response to a use of threatened use of a
weapon of mass destruction (sec. 1513)............. 732
Two-year extension of the Advisory Panel to Assess
Domestic Response Capabilities for Terrorism
Involving Weapons of Mass Destruction (sec. 1514).. 732
Legislative Provisions Not Adopted........................... 733
Establishment of combating terrorism as a national
security mission................................... 733
Title XVI--Uniformed Services Voting............................. 733
Legislative Provisions Adopted............................... 733
Sense of Congress regarding the important of voting
(sec. 1601)........................................ 733
Voting assistance programs (sec. 1602)............... 733
Guarantee of residency for military personnel (sec.
1603).............................................. 734
Electronic voting demonstration project (sec. 1604).. 734
Governors' reports on implementation of
recommendations for changes in state law made under
Federal Voting Assistance Program (sec. 1605)...... 734
Simplification of voter registration and absentee
ballot application procedures for absent uniformed
services and overseas voters (sec. 1606)........... 734
Use of certain Department of Defense facilities as
polling places (sec. 1607)......................... 735
Legislative Provisions Not Adopted........................... 735
Extension of registration and balloting rights for
absent uniformed services voters to state and local
elections.......................................... 735
Maximization of access of recently separated
uniformed service voters to the polls.............. 735
Standard for invalidation of ballots cast by absent
uniformed services voters in federal elections..... 735
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATION.................. 735
Overview............................................. 735
Short title; definition (sec. 2001).................. 758
Title XXI--Army.................................................. 758
Overview............................................. 758
Items of Special Interest.................................... 758
Renovation of Womack Army Medical Center, Fort Bragg
North Carolina..................................... 758
Legislative Provisions Adopted............................... 759
Authorized Army Construction and land acquisition
projects (sec. 2101)............................... 759
Family housing (sec. 2102)........................... 759
Improvements to military family housing units (sec.
2103).............................................. 759
Authorization of appropriations, Army (sec. 2104).... 759
Modification of authority to carry out certain fiscal
year 2001 projects (sec. 2105)..................... 759
Modification of authority to carry out certain fiscal
year 2002 projects (sec. 2106)..................... 760
Title XXIII--Navy................................................ 760
Overview............................................. 760
Legislative Provisions Adopted............................... 760
Authorized Navy construction and land acquisition
projects (sec. 2201)............................... 760
Family housing (sec. 2202)........................... 761
Improvements to military family housing units (sec.
2203).............................................. 761
Authorization of appropriations, Navy (sec. 2204).... 761
Modification of authority to carry out certain fiscal
year 2001 projects (sec. 2205)..................... 761
Modification of authority to carry out certain fiscal
year 2000 project (sec. 2206)...................... 762
Title XXIII--Air Force........................................... 762
Overview............................................. 762
Legislative Provisions Adopted............................... 762
Authorized Air Force construction and land
acquisition projects (sec. 2301)................... 762
Family housing (sec. 2302)........................... 763
Improvements to military family housing units (sec.
2303).............................................. 763
Authorization of appropriations, Air Force (sec.
2304).............................................. 763
Modification of authority to carry out certain fiscal
year 2001 projects (sec. 2305)..................... 763
Title XXIV--Defense Agencies..................................... 763
Overview............................................. 763
Legislative Provisions Adopted............................... 764
Authorized Defense Agencies construction and land
acquisition projects (sec. 2401)................... 764
Energy conservation projects (sec. 2402)............. 764
Authorization of appropriations, Defense Agencies
(sec. 2403)........................................ 764
Cancellation of authority to carry out certain fiscal
year 2001 projects (sec. 2404)..................... 765
Modification of authority to carry out certain fiscal
year 2000 projects (sec. 2405)..................... 765
Modification of authority to carry out certain fiscal
year 1999 project (sec. 2406)...................... 766
Modification of authority to carry out certain fiscal
year 1995 project (sec. 2407)...................... 766
Prohibition on expenditures to develop forward
operating location on Aruba (sec. 2408)............ 766
Legislative Provisions Not Adopted........................... 766
Cancellation of authority to carry out additional
fiscal year 2001 project........................... 766
Title XXV--North Atlantic Treaty Organization Security Investment
Program........................................................ 766
Overview............................................. 766
Legislative Provisions Adopted............................... 768
Authorized NATO construction and land acquisition
projects (sec. 2501)............................... 767
Authorization of appropriations, NATO (sec. 2502).... 767
Title XXVI--Guard and Reserve Facilities......................... 767
Overview............................................. 767
Items of Special Interest.................................... 767
Improvement of National Guard infrastructure......... 767
Planning and design, Army National Guard............. 768
Legislative Provisions Adopted............................... 768
Authorized guard and reserve construction and land
acquisition projects (sec. 2601)................... 768
Title XXVII--Expiration and Extension of Authorizations.......... 768
Legislative Provisions Adopted............................... 768
Expiration of authorizations and amounts required to
be specified by law (sec. 2701).................... 768
Extension of authorizations of certain fiscal year
1999 projects (sec. 2702).......................... 769
Extension of authorizations of certain fiscal year
1998 projects (sec. 2703).......................... 769
Effective date (sec. 2704)........................... 769
Title XXVIII--General Provisions................................. 769
Items of Special Interest.................................... 769
Remediation of former Fort Ord, California........... 769
Legislative Provisions Adopted............................... 770
Subtitle A--Military Construction Program and Military
Family Housing Changes................................. 770
Increase in thresholds for certain unspecified minor
military construction projects (sec. 2801)......... 770
Exclusion of unforseen environmental hazard
remediation from limitation on authorized cost
variations (sec. 2802)............................. 770
Repeal of annual reporting requirement on military
construction and military family housing activities
(sec. 2803)........................................ 770
Funds for housing allowances of members assigned to
military family housing under alternative authority
for acquisition and improvement of military housing
(sec. 2804)........................................ 770
Extension of alternative authority for acquisition
and improvement of military housing (sec. 2805).... 771
Treatment of financing costs as allowable expenses
under contracts for utility services from utility
systems conveyed under privatization initiative
(sec. 2806)........................................ 771
Subtitle B--Real Property and Facilities Administration.. 771
Use of military installations for certain
recreational activities (sec. 2811)................ 771
Availability of proceeds of sales of Department of
Defense property from certain closed military
installations (sec. 2812).......................... 772
Pilot program to provide additional tools for
efficient operation of military installations (sec.
2813).............................................. 772
Demonstration program on reduction in long-term
facility maintenance costs (sec. 2814)............. 772
Base efficiency project at Brooks Air Force Base,
Texas (sec. 2815).................................. 773
Subtitle C--Implementation of Prior Base Closure and
Realignment Rounds..................................... 773
Lease back of base closure property (sec. 2821)...... 773
Subtitle D--Land Conveyances............................. 774
Part I--Army Conveyances................................. 774
Land conveyance, Whittier-Anchorage Pipeline Tank
Farm, Anchorage, Alaska (sec. 2831)................ 774
Lease authority, Fort DeRussy, Hawaii (sec. 2832).... 774
Modification of land exchange, Rock Island Arsenal,
Illinois (sec. 2833)............................... 775
Land conveyance, Fort Des Moines, Iowa (sec. 2834)... 775
Modification of land conveyances, Fort Dix, New
Jersey (sec. 2835)................................. 775
Land conveyance, Engineer Proving Ground Fort
Belvoir, Virginia (sec. 2836)...................... 776
Land exchange and consolidation, Fort Lewis,
Washington (sec. 2837)............................. 776
Land conveyance, Army Reserve Center, Kewaunee,
Wisconsin (sec. 2838).............................. 776
Part II--Navy Conveyances................................ 777
Transfer of jurisdiction, Centerville Beach Naval
Station, Humbolt County, California (sec. 2841).... 777
Land conveyance, Port of Long Beach, California (sec.
2842).............................................. 777
Conveyance of Pier, Naval Base, San Diego, California
(sec. 2843)........................................ 777
Modification of authority for conveyance of Naval
Computer and Telecommunications Station, Cutler,
Maine (sec. 2844).................................. 778
Land transfer and conveyance, Naval Security Group
Activity, Winter Harbor, Maine (sec. 2845)......... 778
Land acquisition, Perquimans County, North Carolina
(sec. 2846)........................................ 778
Land conveyance, Naval Weapons Industrial Reserve
Plant, Toledo, Ohio (sec. 2847).................... 779
Modification of land conveyance, former United States
Marine Corps Air Station, Eagle Mountain Lake,
Texas (sec. 2848).................................. 779
Part III--Air Force Conveyances.......................... 779
Conveyance of avigation easements, former Norton Air
Force Base, California (sec. 2851)................. 779
Reexamination of land conveyance, Lowry Air Force
Base, Colorado (sec. 2852)......................... 780
Water rights conveyance, Andersen Air Force Base,
Guam (sec. 2853)................................... 780
Conveyance of segment of Loring Petroleum Pipeline,
Maine, and related easements (sec. 2854)........... 780
Land conveyance, petroleum terminal serving former
Loring Air Force Base and Bangor Air National Guard
Base, Maine (sec. 2855)............................ 781
Land conveyances, certain former Minuteman III ICBM
facilities in North Dakota (sec. 2856)............. 781
Land conveyances, Charleston Air Force Base, South
Carolina (sec. 2857)............................... 782
Transfer of jurisdiction, Mukilteo Tank Farm,
Everett, Washington (sec. 2858).................... 782
Subtitle E--Other Matters................................ 782
Management of the Presidio of San Francisco (sec.
2861).............................................. 782
Transfer of jurisdiction for development of Air Force
morale, welfare, and recreation facility, Park
City, Utah (sec. 2862)............................. 782
Alternative site for United States Air Force
Memorial, preservation of open space on Arlington
Ridge Tract, and related land transfer at Arlington
National Cemetery, Virginia (sec. 2863)............ 783
Establishment of memorial to victims of terrorist
attack on Pentagon Reservation and authority to
accept monetary contributions for memorial and
repair of Pentagon (sec. 2864)..................... 785
Repeal of limitation on cost of renovation of
Pentagon Reservation (sec. 2865)................... 785
Development of United States Army Heritage and
Education Center at Carlisle Barracks, Pennsylvania
(sec. 2866)........................................ 785
Effect of limitation on construction of roads or
highways, Marine Corps Base, Camp Pendleton,
California (sec. 2867)............................. 786
Establishment of World War II Memorial at additional
location on Guam (sec. 2868)....................... 786
Demonstration project for purchase of fire, security,
police, public works, and utility services from
local government agencies (sec. 2869).............. 786
Report on future land needs of United States Military
Academy, New York, and adjacent community (sec.
2870).............................................. 787
Naming of Patricia C. Lamar Army National Guard
Readiness Center, Oxford, Mississippi (sec. 2871).. 787
Legislative Provisions Not Adopted........................... 787
Authority available for lease of property and
facilities under alternative authority for
acquisition and improvement of military housing.... 787
Land conveyance, Defense Fuel Support Point, Lynn
Haven, Florida..................................... 787
Payment for certain services provided by
redevelopment authorities for property leased back
by the United States............................... 788
Treatment of amounts received........................ 788
Title XXIX--Fort Irwin Military Land Withdrawal.................. 788
Short title (sec. 2901).............................. 788
Withdrawal and reservation of lands for National
Training Center (sec. 2902)........................ 789
Map and legal description (sec. 2903)................ 789
Management of withdrawn and reserved lands (sec.
2904).............................................. 789
Water rights (sec. 2905)............................. 789
Environmental compliance and environmental response
requirements (sec. 2906)........................... 789
West Mojave Coordinated Management Plan (sec. 2907).. 790
Release of wilderness study areas (sec. 2908)........ 790
Training activity separation from utility corridors
(sec. 2909)........................................ 790
Duration of withdrawal and reservation (sec. 2910)... 790
Extension of initial withdrawal and reservation (sec.
2911).............................................. 790
Termination and relinquishment (sec. 2912)........... 790
Delegation of Authority (sec. 2913).................. 791
Title XXX--Realignment and Closure of Military Installations and
Preparation of Infrastructure Plan for the Nuclear Weapons
Complex........................................................ 791
Procedures for the Department of Defense (secs. 3001-
3007).............................................. 792
Preparation of infrastructure plan for the nuclear
weapons complex (sec. 3008)........................ 793
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS
AND OTHER AUTHORIZATIONS....................................... 794
Title XXXI--Department of Energy National Security Programs.. 794
Overview............................................. 794
Legislative Provisions Adopted............................... 812
Subtitle A--National Security Programs Authorizations.... 812
National Nuclear Security Administration (sec. 3101). 812
Defense environmental restoration and waste
management (sec. 3102)............................. 812
Other defense activities (sec. 3103)................. 813
Defense environmental management privatization (sec.
3104).............................................. 813
Defense nuclear waste disposal (sec. 3105)........... 813
Subtitle B--Recurring General Provisions................. 814
Reprogramming (sec. 3121)............................ 814
Limits on minor construction projects (sec. 3122).... 814
Limits on construction projects (sec. 3123).......... 814
Fund transfer authority (sec. 3124).................. 815
Authority for conceptual and construction design
(sec. 3125)........................................ 815
Authority for emergency planning, design, and
construction activities (sec. 3126)................ 815
Funds available for all national security programs of
the Department of Energy (sec. 3127)............... 815
Availability of funds (sec. 3128).................... 816
Transfer of defense environmental management funds
(sec. 3129)........................................ 816
Transfer of weapons activities funds (sec. 3130)..... 816
Subtitle C--Program Authorizations, Restrictions, and
Limitations............................................ 816
Consolidation of Nuclear Cities Initiative program
with Initiatives for Proliferation Prevention
program (sec. 3131)................................ 816
Nuclear Cities Initiative (sec. 3132)................ 817
Limitation on availability of funds for weapons
activities for facilities and infrastructure (sec.
3133).............................................. 817
Limitation on availability of funds for other defense
activities for national security programs
administrative support (sec. 3134)................. 818
Termination date of Office of River Protection,
Richland, Washington (sec. 3135)................... 818
Support for public education in the vicinity of Los
Alamos National Laboratory, New Mexico (sec. 3136). 818
Reports on achievement of milestones for National
Ignition Facility (sec. 3137)...................... 819
Subtitle D--Matters Relating to Management of the
National Nuclear Security Administration............... 819
Establishment of Principal Deputy Administrator of
National Nuclear Security Administration (sec.
3141).............................................. 819
Elimination of requirement that national security
laboratories and nuclear weapons production
facilities report to Deputy Administrator for
Defense Programs (sec. 3142)....................... 820
Repeal of duplicative provision relating to dual
office holding by personnel of National Nuclear
Security Administration (sec. 3143)................ 820
Report on adequacy of federal pay and hiring
authorities to meet personnel requirements of
National Nuclear Security Administration (sec.
3144).............................................. 820
Subtitle E--Other Matters................................ 820
Improvements to energy employees occupational illness
compensation program (sec. 3151)................... 820
Department of Energy counterintelligence polygraph
program (sec. 3152)................................ 823
One-year extension of authority of Department of
Energy to pay voluntary separation incentive
payments (sec. 3153)............................... 823
Annual assessment and report on vulnerability of
Department of Energy facilities to terrorist attack
(sec. 3154)........................................ 823
Disposition of surplus defense plutonium at Savannah
River Site, Aiken, South Carolina (sec. 3155)...... 823
Modification of date of report of Panel to Assess the
Reliability, Safety, and Security of the United
States Nuclear Stockpile (sec. 3156)............... 824
Subtitle F--Rocky Flats National Wildlife Refuge......... 824
Rocky Flats National Wildlife Refuge (sec. 3171-3182) 824
Legislative Provisions Not Adopted........................... 826
Additional objective for Department of Energy defense
nuclear facility workforce restructuring plan...... 826
Clarification of status within the Department of
Energy of Administration and contractor personnel
of the National Nuclear Security Administration.... 826
Construction of Department of Energy operations
office complex..................................... 826
Improvements to Corral Hollow Road, Livermore,
California......................................... 827
Increased amount for nonproliferation and
verification....................................... 827
Title XXXII--Defense Nuclear Facilities Safety Board............. 827
Legislative Provisions Adopted............................... 827
Authorization (sec. 3201)............................ 827
Title XXXIII--National Defense Stockpile......................... 827
Legislative Provisions Adopted............................... 827
Definitions (sec. 3301).............................. 827
Authorized uses of stockpile funds (sec. 3302)....... 827
Authority to dispose of certain materials in National
Defense Stockpile (sec. 3303)...................... 828
Revision of limitations on required disposals of
certain materials in National Defense Stockpile
(sec. 3304)........................................ 828
Acceleration of required disposal of cobalt in
National Defense Stockpile (sec. 3305)............. 828
Restriction on disposal of mangenese ferro (sec.
3306).............................................. 828
Title XXXIV--Naval Petroleum Reserves............................ 828
Legislative Provisions Adopted............................... 828
Authorization of appropriations (sec. 3401).......... 828
Title XXXV--Maritime Administration.............................. 829
Legislative Provisions Adopted............................... 829
Authorization of appropriations for fiscal year 2002
(sec. 3501)........................................ 829
Define ``war risks'' to vessels to include
confiscation, expropriation, nationalization, and
deprivation of the vessels (sec. 3502)............. 829
Holding obligor's cash as collateral under title XI
Merchant Marine act, 1936 (sec. 3503).............. 829
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-333

======================================================================

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

_______

December 12, 2001.--Ordered to be printed

_______

Mr. Stump, from the committee of conference, submitted the following

CONFERENCE REPORT

[To accompany S. 1438]

The committee of conference on the disagreeing votes of the
two Houses on the amendment of the House to the bill (S. 1438),
to authorize appropriations for fiscal year 2002 for military
activities of the Department of Defense, for military
construction, and for defense activities of the Department of
Energy, to prescribe personnel strengths for such fiscal year
for the Armed Forces, and for other purposes, having met, after
full and free conference, have agreed to recommend and do
recommend to their respective Houses as follows:
That the Senate recede from its disagreement to the
amendment of the House and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the House
amendment, insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Defense
Authorization Act for Fiscal Year 2002''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

(a) Divisions.--This Act is organized into three divisions
as follows:
(1) Division A--Department of Defense
Authorizations.
(2) Division B--Military Construction
Authorizations.
(3) Division C--Department of Energy National
Security Authorizations and Other Authorizations.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense Health Program.

Subtitle B--Army Programs

Sec. 111. Repeal of limitations on bunker defeat munitions program.
Sec. 112. Extension of pilot program on sales of manufactured articles
and services of certain Army industrial facilities without
regard to availability from domestic sources.
Sec. 113. Limitations on acquisition of interim armored vehicles and
deployment of interim brigade combat teams.

Subtitle C--Navy Programs

Sec. 121. Virginia class submarine program.
Sec. 122. Multiyear procurement authority for F/A-18E/F aircraft
engines.
Sec. 123. V-22 Osprey aircraft program.
Sec. 124. Report on status of V-22 Osprey aircraft before resumption of
flight testing.

Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Supplemental authorization of appropriations for fiscal year
2001 for research, development, test, and evaluation, Defense-
wide.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Naval surface fire support assessment.
Sec. 212. Collaborative program for development of advanced radar
systems.
Sec. 213. Repeal of limitations on total cost of engineering and
manufacturing development for F-22 aircraft program.
Sec. 214. Joint biological defense program.
Sec. 215. Cooperative Department of Defense-Department of Veterans
Affairs medical research program.
Sec. 216. C-5 aircraft reliability enhancement and reengining program.

Subtitle C--Ballistic Missile Defense

Sec. 231. Transfer of responsibility for procurement for missile defense
programs from Ballistic Missile Defense Organization to
military departments.
Sec. 232. Program elements for Ballistic Missile Defense Organization.
Sec. 233. Support of ballistic missile defense activities of the
Department of Defense by the national defense laboratories of
the Department of Energy.
Sec. 234. Missile defense testing initiative.
Sec. 235. Construction of test bed facilities for missile defense
system.

Subtitle D--Air Force Science and Technology for the 21st Century

Sec. 251. Short title.
Sec. 252. Science and technology investment and development planning.
Sec. 253. Study and report on effectiveness of Air Force science and
technology program changes.

Subtitle E--Other Matters

Sec. 261. Establishment of unmanned aerial vehicle joint operational
test bed system.
Sec. 262. Demonstration project to increase small business and
university participation in Office of Naval Research efforts
to extend benefits of science and technology research to
fleet.
Sec. 263. Communication of safety concerns from operational test and
evaluation officials to program managers.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Funds for renovation of Department of Veterans Affairs
facilities adjacent to Naval Training Center, Great Lakes,
Illinois.
Sec. 306. Defense Language Institute Foreign Language Center expanded
Arabic language program.

Subtitle B--Environmental Provisions

Sec. 311. Inventory of unexploded ordnance, discarded military
munitions, and munitions constituents at defense sites (other
than operational ranges).
Sec. 312. Establishment of new program element for remediation of
unexploded ordnance, discarded military munitions, and
munitions constituents.
Sec. 313. Assessment of environmental remediation of unexploded
ordnance, discarded military munitions, and munitions
constituents.
Sec. 314. Conformity of surety authority under environmental restoration
program with surety authority under CERCLA.
Sec. 315. Elimination of annual report on contractor reimbursement for
costs of environmental response actions.
Sec. 316. Pilot program for sale of air pollution emission reduction
incentives.
Sec. 317. Department of Defense energy efficiency program.
Sec. 318. Procurement of alternative fueled and hybrid light duty
trucks.
Sec. 319. Reimbursement of Environmental Protection Agency for certain
response costs in connection with Hooper Sands Site, South
Berwick, Maine.
Sec. 320. River mitigation studies.

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Commissary benefits for new members of the Ready Reserve.
Sec. 332. Reimbursement for use of commissary facilities by military
departments for purposes other than commissary sales.
Sec. 333. Public releases of commercially valuable information of
commissary stores.
Sec. 334. Rebate agreements with producers of foods provided under
special supplemental food program.
Sec. 335. Civil recovery for nonappropriated fund instrumentality costs
related to shoplifting.

Subtitle D--Workforce and Depot Issues

Sec. 341. Revision of authority to waive limitation on performance of
depot-level maintenance.
Sec. 342. Exclusion of certain expenditures from limitation on private
sector performance of depot-level maintenance.
Sec. 343. Protections for purchasers of articles and services
manufactured or performed by working-capital funded industrial
facilities of the Department of Defense.
Sec. 344. Revision of deadline for annual report on commercial and
industrial activities.
Sec. 345. Pilot manpower reporting system in Department of the Army.
Sec. 346. Development of Army workload and performance system and
Wholesale Logistics Modernization Program.

Subtitle E--Defense Dependents Education

Sec. 351. Assistance to local educational agencies that benefit
dependents of members of the Armed Forces and Department of
Defense civilian employees.
Sec. 352. Impact aid for children with severe disabilities.
Sec. 353. Availability of auxiliary services of defense dependents'
education system for dependents who are home school students.
Sec. 354. Comptroller General study of adequacy of compensation provided
for teachers in the Department of Defense overseas dependents'
schools.

Subtitle F--Other Matters

Sec. 361. Availability of excess defense personal property to support
Department of Veterans Affairs initiative to assist homeless
veterans.
Sec. 362. Incremental implementation of Navy-Marine Corps Intranet
contract.
Sec. 363. Comptroller General study and report of National Guard
Distributive Training Technology Project.
Sec. 364. Reauthorization of warranty claims recovery pilot program.
Sec. 365. Evaluation of current demonstration programs to improve
quality of personal property shipments of members.
Sec. 366. Sense of Congress regarding security to be provided at 2002
Winter Olympic Games.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Increase in senior enlisted active duty grade limit for Navy,
Marine Corps, and Air Force.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the
reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.
Sec. 415. Limitations on numbers of reserve personnel serving on active
duty or full-time National Guard duty in certain grades for
administration of reserve components.

Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Administration of end strengths.
Sec. 422. Active duty end strength exemption for National Guard and
reserve personnel performing funeral honors functions.

Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Enhanced flexibility for management of senior general and flag
officer positions.
Sec. 502. Certifications of satisfactory performance for retirement of
officers in grades above major general and rear admiral.
Sec. 503. Review of actions of selection boards.
Sec. 504. Temporary reduction of time-in-grade requirement for
eligibility for promotion for certain active-duty list
officers in grades of first lieutenant and lieutenant (junior
grade).
Sec. 505. Authority for promotion without selection board consideration
for all fully qualified officers in grade of first lieutenant
or lieutenant (junior grade) in the Navy.
Sec. 506. Authority to adjust date of rank of certain promotions delayed
by reason of unusual circumstances.
Sec. 507. Authority for limited extension of medical deferment of
mandatory retirement or separation.
Sec. 508. Authority for limited extension on active duty of members
subject to mandatory retirement or separation.
Sec. 509. Exemption from certain administrative limitations for retired
officers ordered to active duty as defense or service
attaches.
Sec. 510. Officer in charge of United States Navy Band.

Subtitle B--Reserve Component Personnel Policy

Sec. 511. Placement on active-duty list of certain Reserve officers on
active duty for a period of three years or less.
Sec. 512. Exception to baccalaureate degree requirement for appointment
of Reserve officers to grades above first lieutenant.
Sec. 513. Improved disability benefits for certain reserve component
members.
Sec. 514. Time-in-grade requirement for reserve component officers
retired with a nonservice-connected disability.
Sec. 515. Equal treatment of Reserves and full-time active duty members
for purposes of managing personnel deployments.
Sec. 516. Modification of physical examination requirements for members
of the Individual Ready Reserve.
Sec. 517. Retirement of Reserve members without requirement for formal
application or request.
Sec. 518. Space-required travel by Reserves on military aircraft.
Sec. 519. Payment of Federal Employee Health Benefit Program premiums
for certain Reservists called to active duty in support of
contingency operations.

Subtitle C--Joint Specialty Officers and Joint Professional Military
Education

Sec. 521. Nominations and promotions for joint specialty officers.
Sec. 522. Joint duty credit.
Sec. 523. Retroactive joint service credit for duty in certain joint
task forces.
Sec. 524. Revision to annual report on joint officer management.
Sec. 525. Requirement for selection for joint specialty before promotion
to general or flag officer grade.
Sec. 526. Independent study of joint officer management and joint
professional military education reforms.
Sec. 527. Professional development education.
Sec. 528. Authority for National Defense University to enroll certain
private sector civilians.
Sec. 529. Continuation of reserve component professional military
education test.

Subtitle D--Military Education and Training

Sec. 531. Defense Language Institute Foreign Language Center.
Sec. 532. Authority for the Marine Corps University to award degree of
master of strategic studies.
Sec. 533. Foreign students attending the service academies.
Sec. 534. Increase in maximum age for appointment as a cadet or
midshipman in Senior Reserve Officers' Training Corps
scholarship programs.
Sec. 535. Participation of regular enlisted members of the Armed Forces
in Senior Reserve Officers' Training Corps program.
Sec. 536. Authority to modify the service obligation of certain ROTC
cadets in military junior colleges receiving financial
assistance.
Sec. 537. Repeal of limitation on number of Junior Reserve Officers'
Training Corps units.
Sec. 538. Modification of nurse officer candidate accession program
restriction on students attending educational institutions
with senior reserve officers' training programs.
Sec. 539. Reserve health professionals stipend program expansion.
Sec. 540. Housing allowance for the chaplain for the Corps of Cadets at
the United States Military Academy.

Subtitle E--Recruiting and Accession Programs

Sec. 541. 18-month enlistment pilot program.
Sec. 542. Improved benefits under the Army College First program.
Sec. 543. Correction and extension of certain Army recruiting pilot
program authorities.
Sec. 544. Military recruiter access to secondary school students.
Sec. 545. Permanent authority for use of military recruiting funds for
certain expenses at Department of Defense recruiting
functions.
Sec. 546. Report on health and disability benefits for pre-accession
training and education programs.

Subtitle F--Decorations, Awards, and Posthumous Commissions

Sec. 551. Authority for award of the Medal of Honor to Humbert R.
Versace, Jon E. Swanson, and Ben L. Salomon for valor.
Sec. 552. Review regarding award of Medal of Honor to certain Jewish
American and Hispanic American war veterans.
Sec. 553. Authority to issue duplicate Medals of Honor and to replace
stolen military decorations.
Sec. 554. Retroactive Medal of Honor special pension.
Sec. 555. Waiver of time limitations for award of certain decorations to
certain persons.
Sec. 556. Sense of Congress on issuance of certain medals.
Sec. 557. Sense of Congress on development of a more comprehensive,
uniform policy for the award of decorations to military and
civilian personnel of the Department of Defense.
Sec. 558. Posthumous Army commission in the grade of captain in the
Chaplains Corps to Ella E. Gibson for service as chaplain of
the First Wisconsin Heavy Artillery Regiment during the Civil
War.

Subtitle G--Funeral Honors Duty

Sec. 561. Participation of military retirees in funeral honors details.
Sec. 562. Funeral honors duty performed by Reserve and Guard members to
be treated as inactive-duty training for certain purposes.
Sec. 563. Use of military leave for funeral honors duty by Reserve
members and National Guardsmen.
Sec. 564. Authority to provide appropriate articles of clothing as a
civilian uniform for civilians participating in funeral honor
details.

Subtitle H--Military Spouses and Family Members

Sec. 571. Improved financial and other assistance to military spouses
for job training and education.
Sec. 572. Persons authorized to be included in surveys of military
families regarding Federal programs.
Sec. 573. Clarification of treatment of classified information
concerning persons in a missing status.
Sec. 574. Transportation to annual meeting of next-of-kin of persons
unaccounted for from conflicts after World War II.
Sec. 575. Amendments to charter of Defense Task Force on Domestic
Violence.

Subtitle I--Military Justice and Legal Assistance Matters

Sec. 581. Blood alcohol content limit for the offense under the Uniform
Code of Military Justice of drunken operation of a vehicle,
aircraft, or vessel.
Sec. 582. Requirement that courts-martial consist of not less than 12
members in capital cases.
Sec. 583. Acceptance of voluntary legal assistance for the civil affairs
of members and former members of the uniformed services and
their dependents.

Subtitle J--Other Matters

Sec. 591. Congressional review period for change in ground combat
exclusion policy.
Sec. 592. Per diem allowance for lengthy or numerous deployments.
Sec. 593. Clarification of disability severance pay computation.
Sec. 594. Transportation or storage of privately owned vehicles on
change of permanent station.
Sec. 595. Repeal of requirement for final Comptroller General report
relating to Army end strength allocations.
Sec. 596. Continued Department of Defense administration of National
Guard Challenge program and Department of Defense Starbase
program.
Sec. 597. Report on Defense Science Board recommendation on original
appointments in regular grades for Academy graduates and
certain other new officers.
Sec. 598. Sense of Congress regarding the selection of officers for
recommendation for appointment as Commander, United States
Transportation Command.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.
Sec. 602. Basic pay rate for certain reserve commissioned officers with
prior service as an enlisted member or warrant officer.
Sec. 603. Reserve component compensation for distributed learning
activities performed as inactive-duty training.
Sec. 604. Subsistence allowances.
Sec. 605. Eligibility for temporary housing allowance while in travel or
leave status between permanent duty stations.
Sec. 606. Uniform allowance for officers.
Sec. 607. Family separation allowance for members electing unaccompanied
tour by reason of health limitations of dependents.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay
authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay
authorities for nurse officer candidates, registered nurses,
and nurse anesthetists.
Sec. 613. One-year extension of special pay and bonus authorities for
nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Hazardous duty pay for members of maritime visit, board,
search, and seizure teams.
Sec. 616. Eligibility for certain career continuation bonuses for early
commitment to remain on active duty.
Sec. 617. Secretarial discretion in prescribing submarine duty incentive
pay rates.
Sec. 618. Conforming accession bonus for dental officers authority with
authorities for other special pay and bonuses.
Sec. 619. Modification of eligibility requirements for Individual Ready
Reserve bonus for reenlistment, enlistment, or extension of
enlistment.
Sec. 620. Installment payment authority for 15-year career status bonus.
Sec. 621. Accession bonus for new officers in critical skills.
Sec. 622. Education savings plan to encourage reenlistments and
extensions of service in critical specialties.
Sec. 623. Continuation of payment of special and incentive pay at
unreduced rates during stop loss periods.
Sec. 624. Retroactive authorization for imminent danger pay for service
in connection with Operation Enduring Freedom.

Subtitle C--Travel and Transportation Allowances

Sec. 631. Minimum per diem rate for travel and transportation allowance
for travel performed upon a change of permanent station and
certain other travel.
Sec. 632. Eligibility for payment of subsistence expenses associated
with occupancy of temporary lodging incident to reporting to
first permanent duty station.
Sec. 633. Reimbursement of members for mandatory pet quarantine fees for
household pets.
Sec. 634. Increased weight allowance for transportation of baggage and
household effects for junior enlisted members.
Sec. 635. Eligibility of additional members for dislocation allowance.
Sec. 636. Partial dislocation allowance authorized for housing moves
ordered for Government convenience.
Sec. 637. Allowances for travel performed in connection with members
taking authorized leave between consecutive overseas tours.
Sec. 638. Travel and transportation allowances for family members to
attend burial of a deceased member of the uniformed services.
Sec. 639. Funded student travel for foreign study under an education
program approved by a United States school.

Subtitle D--Retirement and Survivor Benefit Matters

Sec. 641. Contingent authority for concurrent receipt of military
retired pay and veterans' disability compensation and
enhancement of special compensation authority.
Sec. 642. Survivor Benefit Plan annuities for surviving spouses of
members who die while on active duty and not eligible for
retirement.

Subtitle E--Other Matters

Sec. 651. Payment for unused leave in excess of 60 days accrued by
members of reserve components on active duty for one year or
less.
Sec. 652. Additional authority to provide assistance for families of
members of the Armed Forces.
Sec. 653. Authorization of transitional compensation and commissary and
exchange benefits for dependents of commissioned officers of
the Public Health Service and the National Oceanic and
Atmospheric Administration who are separated for dependent
abuse.
Sec. 654. Transfer of entitlement to educational assistance under
Montgomery GI Bill by members of the Armed Forces with
critical military skills.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--TRICARE Program Improvements

Sec. 701. Sub-acute and long-term care program reform.
Sec. 702. Prosthetics and hearing aids.
Sec. 703. Durable medical equipment.
Sec. 704. Rehabilitative therapy.
Sec. 705. Report on mental health benefits.
Sec. 706. Clarification of eligibility for reimbursement of travel
expenses of adult accompanying patient in travel for specialty
care.
Sec. 707. TRICARE program limitations on payment rates for institutional
health care providers and on balance billing by institutional
and noninstitutional health care providers.
Sec. 708. Improvements in administration of the TRICARE program.

Subtitle B--Senior Health Care

Sec. 711. Clarifications and improvements regarding the Department of
Defense Medicare-Eligible Retiree Health Care Fund.

Subtitle C--Studies and Reports

Sec. 721. Comptroller General study of health care coverage of members
of the reserve components of the Armed Forces and the National
Guard.
Sec. 722. Comptroller General study of adequacy and quality of health
care provided to women under the defense health program.
Sec. 723. Repeal of obsolete report requirement.
Sec. 724. Comptroller General report on requirement to provide
screenings, physical examinations, and other care for certain
members.

Subtitle D--Other Matters

Sec. 731. Prohibition against requiring military retirees to receive
health care solely through the Department of Defense.
Sec. 732. Fees for trauma and other medical care provided to civilians.
Sec. 733. Enhancement of medical product development.
Sec. 734. Pilot program providing for Department of Veterans Affairs
support in the performance of separation physical
examinations.
Sec. 735. Modification of prohibition on requirement of nonavailability
statement or preauthorization.
Sec. 736. Transitional health care for members separated from active
duty.
Sec. 737. Two-year extension of health care management demonstration
program.
Sec. 738. Joint DoD-VA pilot program for providing graduate medical
education and training for physicians.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Procurement Management and Administration

Sec. 801. Management of procurement of services.
Sec. 802. Savings goals for procurements of services.
Sec. 803. Competition requirement for purchase of services pursuant to
multiple award contracts.
Sec. 804. Reports on maturity of technology at initiation of major
defense acquisition programs.

Subtitle B--Use of Preferred Sources

Sec. 811. Applicability of competition requirements to purchases from a
required source.
Sec. 812. Extension of mentor-protege program.
Sec. 813. Increase of assistance limitation regarding procurement
technical assistance program.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Related Matters

Sec. 821. Amendments to conform with administrative changes in
acquisition phase and milestone terminology and to make
related adjustments in certain requirements applicable at
milestone transition points.
Sec. 822. Follow-on production contracts for products developed pursuant
to prototype projects.
Sec. 823. One-year extension of program applying simplified procedures
to certain commercial items.
Sec. 824. Acquisition workforce qualifications.
Sec. 825. Report on implementation of recommendations of the acquisition
2005 task force.

Subtitle D--Other Matters

Sec. 831. Identification of errors made by executive agencies in
payments to contractors and recovery of amounts erroneously
paid.
Sec. 832. Codification and modification of provision of law known as the
``Berry amendment''.
Sec. 833. Personal services contracts to be performed by individuals or
organizations abroad.
Sec. 834. Requirements regarding insensitive munitions.
Sec. 835. Inapplicability of limitation to small purchases of miniature
or instrument ball or roller bearings under certain
circumstances.
Sec. 836. Temporary emergency procurement authority to facilitate the
defense against terrorism or biological or chemical attack.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Deputy Under Secretary of Defense for Personnel and Readiness.
Sec. 902. Sense of Congress on functions of new Office of Force
Transformation in the Office of the Secretary of Defense.
Sec. 903. Suspension of reorganization of engineering and technical
authority policy within the Naval Sea Systems Command pending
report to congressional committees.

Subtitle B--Space Activities

Sec. 911. Joint management of space programs.
Sec. 912. Requirement to establish in the Air Force an officer career
field for space.
Sec. 913. Secretary of Defense report on space activities.
Sec. 914. Comptroller General assessment of implementation of
recommendations of Space Commission.
Sec. 915. Sense of Congress regarding officers recommended to be
appointed to serve as Commander of United States Space
Command.

Subtitle C--Reports

Sec. 921. Revised requirement for Chairman of the Joint Chiefs of Staff
to advise Secretary of Defense on the assignment of roles and
missions to the Armed Forces.
Sec. 922. Revised requirements for content of annual report on joint
warfighting experimentation.
Sec. 923. Repeal of requirement for one of three remaining required
reports on activities of Joint Requirements Oversight Council.
Sec. 924. Revised joint report on establishment of national
collaborative information analysis capability.

Subtitle D--Other Matters

Sec. 931. Conforming amendments relating to change of name of Military
Airlift Command to Air Mobility Command.
Sec. 932. Organizational realignment for Navy Director for Expeditionary
Warfare.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of supplemental appropriations for fiscal year
2001.
Sec. 1004. United States contribution to NATO common-funded budgets in
fiscal year 2002.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping
operations for fiscal year 2002.
Sec. 1006. Maximum amount for National Foreign Intelligence Program.
Sec. 1007. Clarification of applicability of interest penalties for late
payment of interim payments due under contracts for services.
Sec. 1008. Reliability of Department of Defense financial statements.
Sec. 1009. Financial Management Modernization Executive Committee and
financial feeder systems compliance process.
Sec. 1010. Authorization of funds for ballistic missile defense programs
or combating terrorism programs of the Department of Defense.

Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority to transfer naval vessels to certain foreign
countries.
Sec. 1012. Sale of Glomar Explorer to the lessee.
Sec. 1013. Leasing of Navy ships for university national oceanographic
laboratory system.
Sec. 1014. Increase in limitations on administrative authority of the
Navy to settle admiralty claims.

Subtitle C--Counter-Drug Activities

Sec. 1021. Extension and restatement of authority to provide Department
of Defense support for counter-drug activities of other
governmental agencies.
Sec. 1022. Extension of reporting requirement regarding Department of
Defense expenditures to support foreign counter-drug
activities.
Sec. 1023. Authority to transfer Tracker aircraft currently used by
Armed Forces for counter-drug purposes.
Sec. 1024. Limitation on use of funds for operation of Tethered Aerostat
Radar System pending submission of required report.

Subtitle D--Strategic Forces

Sec. 1031. Repeal of limitation on retirement or dismantlement of
strategic nuclear delivery systems.
Sec. 1032. Air Force bomber force structure.
Sec. 1033. Additional element for revised nuclear posture review.
Sec. 1034. Report on options for modernization and enhancement of
missile wing helicopter support.

Subtitle E--Other Department of Defense Provisions

Sec. 1041. Secretary of Defense recommendation on need for Department of
Defense review of proposed Federal agency actions to consider
possible impact on national defense.
Sec. 1042. Department of Defense reports to Congress to be accompanied
by electronic version upon request.
Sec. 1043. Department of Defense gift authorities.
Sec. 1044. Acceleration of research, development, and production of
medical countermeasures for defense against biological warfare
agents.
Sec. 1045. Chemical and biological protective equipment for military
personnel and civilian employees of the Department of Defense.
Sec. 1046. Sale of goods and services by Naval Magazine, Indian Island,
Alaska.
Sec. 1047. Report on procedures and guidelines for embarkation of
civilian guests on naval vessels for public affairs purposes.
Sec. 1048. Technical and clerical amendments.
Sec. 1049. Termination of referendum requirement regarding continuation
of military training on island of Vieques, Puerto Rico, and
imposition of additional conditions on closure of live-fire
training range.

Subtitle F--Other Matters

Sec. 1061. Assistance for firefighters.
Sec. 1062. Extension of times for Commission on the Future of the United
States Aerospace industry to report and to terminate.
Sec. 1063. Appropriations to Radiation Exposure Compensation Trust Fund.
Sec. 1064. Waiver of vehicle weight limits during periods of national
emergency.
Sec. 1065. Repair, restoration, and preservation of Lafayette Escadrille
Memorial, Marnes-la-Coquette, France.

TITLE XI--CIVILIAN PERSONNEL MATTERS

Subtitle A--Department of Defense Civilian Personnel

Sec. 1101. Personnel pay and qualifications authority for Department of
Defense Pentagon Reservation civilian law enforcement and
security force.
Sec. 1102. Pilot program for payment of retraining expenses.
Sec. 1103. Authority of civilian employees to act as notaries.
Sec. 1104. Authority to appoint certain health care professionals in the
excepted service.

Subtitle B--Civilian Personnel Management Generally

Sec. 1111. Authority to provide hostile fire pay.
Sec. 1112. Payment of expenses to obtain professional credentials.
Sec. 1113. Parity in establishment of wage schedules and rates for
prevailing rate employees.
Sec. 1114. Modification of limitation on premium pay.
Sec. 1115. Participation of personnel in technical standards development
activities.
Sec. 1116. Retention of travel promotional items.
Sec. 1117. Applicability of certain laws to certain individuals assigned
to work in the Federal Government.

Subtitle C--Intelligence Civilian Personnel

Sec. 1121. Authority to increase maximum number of positions in the
Defense Intelligence Senior Executive Service.

Subtitle D--Matters Relating To Retirement

Sec. 1131. Improved portability of retirement coverage for employees
moving between civil service employment and employment by
nonappropriated fund instrumentalities.
Sec. 1132. Federal employment retirement credit for nonappropriated fund
instrumentality service.
Sec. 1133. Modification of limitations on exercise of voluntary
separation incentive pay authority and voluntary early
retirement authority.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

Subtitle A--Matters Related to Arms Control and Monitoring

Sec. 1201. Clarification of authority to furnish nuclear test monitoring
equipment to foreign governments.
Sec. 1202. Limitation on funding for joint Data Exchange Center in
Moscow.
Sec. 1203. Support of United Nations-sponsored efforts to inspect and
monitor Iraqi weapons activities.
Sec. 1204. Authority for employees of Federal Government contractors to
accompany chemical weapons inspection teams at Government-
owned facilities.
Sec. 1205. Plan for securing nuclear weapons, material, and expertise of
the states of the former Soviet Union.

Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

Sec. 1211. Acquisition of logistical support for security forces.
Sec. 1212. Extension of authority for international cooperative research
and development projects.
Sec. 1213. Cooperative agreements with foreign countries and
international organizations for reciprocal use of test
facilities.
Sec. 1214. Sense of Congress on allied defense burdensharing.

Subtitle C--Reports

Sec. 1221. Report on significant sales and transfers of military
hardware, expertise, and technology to the People's Republic
of China.
Sec. 1222. Repeal of requirement for reporting to Congress on military
deployments to Haiti.
Sec. 1223. Report by Comptroller General on provision of defense
articles, services, and military education and training to
foreign countries and international organizations.

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and
funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on use of funds until submission of reports.
Sec. 1304. Requirement to consider use of revenue generated by
activities carried out under Cooperative Threat Reduction
programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile
material storage facility.
Sec. 1306. Prohibition against use of funds for certain construction
activities.
Sec. 1307. Reports on activities and assistance under Cooperative Threat
Reduction programs.
Sec. 1308. Chemical weapons destruction.
Sec. 1309. Additional matter in annual report on activities and
assistance under Cooperative Threat Reduction programs.

TITLE XIV--ARMED FORCES RETIREMENT HOME

Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.
Sec. 1402. Definitions.
Sec. 1403. Revision of authority establishing the Armed Forces
Retirement Home.
Sec. 1404. Chief Operating Officer.
Sec. 1405. Residents of Retirement Home.
Sec. 1406. Local Boards of Trustees.
Sec. 1407. Directors, Deputy Directors, Associate Directors, and staff
of facilities.
Sec. 1408. Disposition of effects of deceased persons and unclaimed
property.
Sec. 1409. Transitional provisions.
Sec. 1410. Conforming and clerical amendments and repeals of obsolete
provisions.

TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

Subtitle A--Increased Funding for Combating Terrorism

Sec. 1501. Definitions.
Sec. 1502. Authorization of emergency appropriations for fiscal year
2001 made by Public Law 107-38 and allocated for national
defense functions.
Sec. 1503. Authorization of emergency supplemental appropriations for
fiscal year 2002.
Sec. 1504. Authorization of use of funds for military construction
projects.
Sec. 1505. Treatment of transferred amounts.
Sec. 1506. Quarterly reports.

Subtitle B--Policy Matters Relating to Combating Terrorism

Sec. 1511. Study and report on the role of the Department of Defense
with respect to homeland security.
Sec. 1512. Combating Terrorism Readiness Initiatives Fund for combatant
commands.
Sec. 1513. Conveyances of equipment and related materials loaned to
State and local governments as assistance for emergency
response to a use or threatened use of a weapon of mass
destruction.
Sec. 1514. Two-year extension of advisory panel to assess domestic
response capabilities for terrorism involving weapons of mass
destruction.

TITLE XVI--UNIFORMED SERVICES VOTING

Sec. 1601. Sense of Congress regarding the importance of voting.
Sec. 1602. Voting assistance programs.
Sec. 1603. Guarantee of residency for military personnel.
Sec. 1604. Electronic voting demonstration project.
Sec. 1605. Governors' reports on implementation of recommendations for
changes in State law made under Federal Voting Assistance
Program.
Sec. 1606. Simplification of voter registration and absentee ballot
application procedures for absent uniformed services and
overseas voters.
Sec. 1607. Use of certain Department of Defense facilities as polling
places.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title; definition.

TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year
2001 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year
2000 projects.

TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year
2001 projects.
Sec. 2206. Modification of authority to carry out certain fiscal year
2000 project.

TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition
projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year
2001 projects.

TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Cancellation of authority to carry out certain fiscal year
2001 projects.
Sec. 2405. Modification of authority to carry out certain fiscal year
2000 projects.
Sec. 2406. Modification of authority to carry out certain fiscal year
1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year
1995 project.
Sec. 2408. Prohibition on expenditures to develop forward operating
location on Aruba.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FACILITIES

Sec. 2601. Authorized guard and reserve construction and land
acquisition projects.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be
specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1999
projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1998
projects.
Sec. 2704. Effective date.

TITLE XXVIII--GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing
Changes

Sec. 2801. Increase in thresholds for certain unspecified minor military
construction projects.
Sec. 2802. Exclusion of unforeseen environmental hazard remediation from
limitation on authorized cost variations.
Sec. 2803. Repeal of annual reporting requirement on military
construction and military family housing activities.
Sec. 2804. Funds for housing allowances of members assigned to military
family housing under alternative authority for acquisition and
improvement of military housing.
Sec. 2805. Extension of alternative authority for acquisition and
improvement of military housing.
Sec. 2806. Treatment of financing costs as allowable expenses under
contracts for utility services from utility systems conveyed
under privatization initiative.

Subtitle B--Real Property and Facilities Administration

Sec. 2811. Use of military installations for certain recreational
activities.
Sec. 2812. Availability of proceeds of sales of Department of Defense
property from certain closed military installations.
Sec. 2813. Pilot program to provide additional tools for efficient
operation of military installations.
Sec. 2814. Demonstration program on reduction in long-term facility
maintenance costs.
Sec. 2815. Base efficiency project at Brooks Air Force Base, Texas.

Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

Sec. 2821. Lease back of base closure property.

Subtitle D--Land Conveyances

Part I--Army Conveyances

Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm,
Anchorage, Alaska.
Sec. 2832. Lease authority, Fort Derussy, Hawaii.
Sec. 2833. Modification of land exchange, Rock Island Arsenal, Illinois.
Sec. 2834. Land conveyance, Fort Des Moines, Iowa.
Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir,
Virginia.
Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.
Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.

Part II--Navy Conveyances

Sec. 2841. Transfer of jurisdiction, Centerville Beach Naval Station,
Humboldt County, California.
Sec. 2842. Land conveyance, Port of Long Beach, California.
Sec. 2843. Conveyance of pier, Naval Base, San Diego, California.
Sec. 2844. Modification of authority for conveyance of Naval Computer
and Telecommunications Station, Cutler, Maine.
Sec. 2845. Land transfer and conveyance, Naval Security Group Activity,
Winter Harbor, Maine.
Sec. 2846. Land acquisition, Perquimans County, North Carolina.
Sec. 2847. Land conveyance, Naval Weapons Industrial Reserve Plant,
Toledo, Ohio.
Sec. 2848. Modification of land conveyance, former United States Marine
Corps Air Station, Eagle Mountain Lake, Texas.

Part III--Air Force Conveyances

Sec. 2851. Conveyance of avigation easements, former Norton Air Force
Base, California.
Sec. 2852. Reexamination of land conveyance, Lowry Air Force Base,
Colorado.
Sec. 2853. Water rights conveyance, Andersen Air Force Base, Guam.
Sec. 2854. Conveyance of segment of Loring petroleum pipeline, Maine,
and related easements.
Sec. 2855. Land conveyance, petroleum terminal serving former Loring Air
Force Base and Bangor Air National Guard Base, Maine.
Sec. 2856. Land conveyances, certain former Minuteman III ICBM
facilities in North Dakota.
Sec. 2857. Land conveyances, Charleston Air Force Base, South Carolina.
Sec. 2858. Transfer of jurisdiction, Mukilteo Tank Farm, Everett,
Washington.

Subtitle E--Other Matters

Sec. 2861. Management of the Presidio of San Francisco.
Sec. 2862. Transfer of jurisdiction for development of Air Force morale,
welfare, and recreation facility, Park City, Utah.
Sec. 2863. Alternate site for United States Air Force Memorial,
preservation of open space on Arlington Ridge tract, and
related land transfer at Arlington National Cemetery,
Virginia.
Sec. 2864. Establishment of memorial to victims of terrorist attack on
Pentagon Reservation and authority to accept monetary
contributions for memorial and repair of Pentagon.
Sec. 2865. Repeal of limitation on cost of renovation of Pentagon
Reservation.
Sec. 2866. Development of United States Army Heritage and Education
Center at Carlisle Barracks, Pennsylvania.
Sec. 2867. Effect of limitation on construction of roads or highways,
Marine Corps Base, Camp Pendleton, California.
Sec. 2868. Establishment of World War II memorial at additional location
on Guam.
Sec. 2869. Demonstration project for purchase of fire, security, police,
public works, and utility services from local government
agencies.
Sec. 2870. Report on future land needs of United States Military
Academy, New York, and adjacent community.
Sec. 2871. Naming of Patricia C. Lamar Army National Guard Readiness
Center, Oxford, Mississippi.

TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands for National Training
Center.
Sec. 2903. Map and legal description.
Sec. 2904. Management of withdrawn and reserved lands.
Sec. 2905. Water rights.
Sec. 2906. Environmental compliance and environmental response
requirements.
Sec. 2907. West Mojave Coordinated Management Plan.
Sec. 2908. Release of wilderness study areas.
Sec. 2909. Training activity separation from utility corridors.
Sec. 2910. Duration of withdrawal and reservation.
Sec. 2911. Extension of initial withdrawal and reservation.
Sec. 2912. Termination and relinquishment.
Sec. 2913. Delegation of authority.

TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS AND
PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX

Sec. 3001. Authorization of round of realignments and closures of
military installations in 2005.
Sec. 3002. Selection criteria.
Sec. 3003. Revised procedures for making recommendations for
realignments and closures and commission consideration of
recommendations.
Sec. 3004. Limitations on privatization in place.
Sec. 3005. Department of Defense Base Closure Account 2005.
Sec. 3006. Implementation of closure and realignment decisions.
Sec. 3007. Technical and clarifying amendments.
Sec. 3008. Preparation of infrastructure plan for the nuclear weapons
complex.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense environmental management privatization.
Sec. 3105. Defense nuclear waste disposal.

Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on minor construction projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction
activities.
Sec. 3127. Funds available for all national security programs of the
Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfer of defense environmental management funds.
Sec. 3130. Transfer of weapons activities funds.

Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Consolidation of Nuclear Cities Initiative program with
Initiatives for Proliferation Prevention program.
Sec. 3132. Nuclear Cities Initiative.
Sec. 3133. Limitation on availability of funds for weapons activities
for facilities and infrastructure.
Sec. 3134. Limitation on availability of funds for other defense
activities for national security programs administrative
support.
Sec. 3135. Termination date of Office of River Protection, Richland,
Washington.
Sec. 3136. Support for public education in the vicinity of Los Alamos
National Laboratory, New Mexico.
Sec. 3137. Reports on achievement of milestones for National Ignition
Facility.

Subtitle D--Matters Relating to Management of the National Nuclear
Security Administration

Sec. 3141. Establishment of Principal Deputy Administrator of National
Nuclear Security Administration.
Sec. 3142. Elimination of requirement that national security
laboratories and nuclear weapons production facilities report
to Deputy Administrator for Defense Programs.
Sec. 3143. Repeal of duplicative provision relating to dual office
holding by personnel of National Nuclear Security
Administration.
Sec. 3144. Report on adequacy of Federal pay and hiring authorities to
meet personnel requirements of National Nuclear Security
Administration.

Subtitle E--Other Matters

Sec. 3151. Improvements to Energy Employees Occupational Illness
Compensation Program.
Sec. 3152. Department of Energy counterintelligence polygraph program.
Sec. 3153. One-year extension of authority of Department of Energy to
pay voluntary separation incentive payments.
Sec. 3154. Annual assessment and report on vulnerability of Department
of Energy facilities to terrorist attack.
Sec. 3155. Disposition of surplus defense plutonium at Savannah River
Site, Aiken, South Carolina.
Sec. 3156. Modification of date of report of panel to assess the
reliability, safety, and security of the United States nuclear
stockpile.

Subtitle F--Rocky Flats National Wildlife Refuge

Sec. 3171. Short title.
Sec. 3172. Findings and purposes.
Sec. 3173. Definitions.
Sec. 3174. Future ownership and management.
Sec. 3175. Transfer of management responsibilities and jurisdiction over
Rocky Flats.
Sec. 3176. Administration of retained property; continuation of cleanup
and closure.
Sec. 3177. Rocky Flats National Wildlife Refuge.
Sec. 3178. Comprehensive planning process.
Sec. 3179. Property rights.
Sec. 3180. Liabilities and other obligations.
Sec. 3181. Rocky Flats Museum.
Sec. 3182. Annual report on funding.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National Defense
Stockpile.
Sec. 3304. Revision of limitations on required disposals of certain
materials in National Defense Stockpile.
Sec. 3305. Acceleration of required disposal of cobalt in National
Defense Stockpile.
Sec. 3306. Restriction on disposal of manganese ferro.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2002.
Sec. 3502. Define ``war risks'' to vessels to include confiscation,
expropriation, nationalization, and deprivation of the
vessels.
Sec. 3503. Holding obligor's cash as collateral under title XI of
Merchant Marine Act, 1936.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

For purposes of this Act, the term ``congressional defense
committees'' means--
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on Armed Services and the
Committee on Appropriations of the House of
Representatives.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Subtitle B--Army Programs

Subtitle C--Navy Programs

Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal
year 2002 for procurement for the Army as follows:
(1) For aircraft, $2,075,372,000.
(2) For missiles, $1,086,954,000.
(3) For weapons and tracked combat vehicles,
$2,348,145,000.
(4) For ammunition, $1,187,233,000.
(5) For other procurement, $4,044,080,000.

SEC. 102. NAVY AND MARINE CORPS.

(a) Navy.--Funds are hereby authorized to be appropriated
for fiscal year 2002 for procurement for the Navy as follows:
(1) For aircraft, $8,323,147,000.
(2) For weapons, including missiles and torpedoes,
$1,484,321,000.
(3) For shipbuilding and conversion,
$9,370,972,000.
(4) For other procurement, $4,282,471,000.
(b) Marine Corps.--Funds are hereby authorized to be
appropriated for fiscal year 2002 for procurement for the
Marine Corps in the amount of $1,014,637,000.
(c) Navy and Marine Corps Ammunition.--Funds are hereby
authorized to be appropriated for fiscal year 2002 for
procurement of ammunition for the Navy and the Marine Corps in
the amount of $466,907,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal
year 2002 for procurement for the Air Force as follows:
(1) For aircraft, $10,789,167,000.
(2) For missiles, $3,222,636,000.
(3) For ammunition, $881,844,000.
(4) For other procurement, $8,196,021,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal
year 2002 for Defense-wide procurement in the amount of
$2,279,482,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

Funds are hereby authorized to be appropriated for fiscal
year 2002 for procurement for the Inspector General of the
Department of Defense in the amount of $2,800,000.

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

There is hereby authorized to be appropriated for fiscal
year 2002 for the Department of Defense for Chemical Agents and
Munitions Destruction, Defense, the amount of $1,153,557,000
for--
(1) the destruction of lethal chemical agents and
munitions in accordance with section 1412 of the
Department of Defense Authorization Act, 1986 (50
U.S.C. 1521); and
(2) the destruction of chemical warfare materiel of
the United States that is not covered by section 1412
of such Act.

SEC. 107. DEFENSE HEALTH PROGRAM.

Funds are hereby authorized to be appropriated for fiscal
year 2002 for the Department of Defense for procurement for
carrying out health care programs, projects, and activities of
the Department of Defense in the total amount of $267,915,000.

Subtitle B--Army Programs

SEC. 111. REPEAL OF LIMITATIONS ON BUNKER DEFEAT MUNITIONS PROGRAM.

Section 116 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2682) is
repealed.

SEC. 112. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES
AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES
WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC
SOURCES.

Section 141(a) of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note)
is amended--
(1) by striking ``through 2001'' and inserting
``through 2002''; and
(2) by inserting before the period at the end the
following: ``, except that during fiscal year 2002 the
Secretary may only use articles manufactured at, and
services provided by, not more than one Army industrial
facility''.

SEC. 113. LIMITATIONS ON ACQUISITION OF INTERIM ARMORED VEHICLES AND
DEPLOYMENT OF INTERIM BRIGADE COMBAT TEAMS.

Section 113 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-23) is amended--
(1) by redesignating subsection (f) as subsection
(j); and
(2) by inserting after subsection (e) the following
new subsections:
``(f) Waiver of Comparison Requirement.--The Secretary of
Defense may waive subsections (c) and (e)(1) and submit to the
congressional defense committees a certification under
subsection (e)(2) without regard to the requirement in that
subsection for the completion of a comparison of costs and
operational effectiveness if the Secretary includes in the
submittal a certification of each of the following:
``(1) That the results of executed tests and
existing analyses are sufficient for making a
meaningful comparison of the costs and operational
effectiveness of the interim armored vehicles referred
to in subparagraph (A) of subsection (c)(1) and the
medium armored vehicles referred to in subparagraph (B)
of such subsection.
``(2) That the conduct of a comparative evaluation
of those vehicles in a realistic field environment
would provide no significant additional data relevant
to that comparison.
``(3) That the Secretary has evaluated the existing
data on cost and operational effectiveness of those
vehicles and, taking that data into consideration,
approves the obligation of funds for the acquisition of
additional interim armored vehicles.
``(4) That sufficient resources will be requested
in the future-years defense program to fully fund the
Army's requirements for interim brigade combat teams.
``(5) That the force structure resulting from the
establishment of the interim brigade combat teams and
the subsequent achievement of operational capability by
those teams will not diminish the combat power of the
Army.
``(g) Experimentation Program.--The Secretary of the Army
shall develop and provide resources for an experimentation
program that will--
``(1) provide information as to the design of the
objective force; and
``(2) include a formal linkage of the interim
brigade combat teams to that experimentation.
``(h) Operational Evaluation.--(1) The Secretary of the
Army shall conduct an operational evaluation of the initial
interim brigade combat team. The evaluation shall include
deployment of the team to the evaluation site and team
execution of combat missions across the full spectrum of
potential threats and operational scenarios.
``(2) The operational evaluation under paragraph (1) may
not be conducted until the plan for such evaluation is approved
by the Director of Operational Test and Evaluation of the
Department of Defense.
``(i) Limitation on Procurement of Interim Armored Vehicles
and Deployment of IBCTs.--(1) The actions described in
paragraph (2) may not be taken until the date that is 30 days
after the date on which the Secretary of Defense--
``(A) submits to Congress a report on the
operational evaluation carried out under subsection
(h); and
``(B) certifies to Congress that the results of
that operational evaluation indicate that the design
for the interim brigade combat team is operationally
effective and operationally suitable.
``(2) The limitation in paragraph (1) applies to the
following actions:
``(A) Procurement of interim armored vehicles in
addition to those necessary for equipping the first
three interim brigade combat teams.
``(B) Deployment of any interim brigade combat team
outside the United States.
``(3) The Secretary of Defense may waive the applicability
of paragraph (1) to a deployment described in paragraph (2)(B)
if the Secretary--
``(A) determines that the deployment is in the
national security interests of the United States; and
``(B) submits to Congress, in writing, a
notification of the waiver together with a discussion
of the reasons for the waiver.''.

Subtitle C--Navy Programs

SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

Section 123(b)(1) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-25) is amended--
(1) by striking ``five Virginia class submarines''
and inserting ``seven Virginia class submarines''; and
(2) by striking ``2006'' and inserting ``2007''.

SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A-18E/F AIRCRAFT
ENGINES.

(a) Multiyear Authority.--Beginning with the 2002 program
year, the Secretary of the Navy may, in accordance with section
2306b of title 10, United States Code, enter into a multiyear
contract for the procurement of engines for F/A-18E/F aircraft.
(b) Required Certifications.--In the case of a contract
authorized by subsection (a) of this section, a certification
under subsection (i)(1)(A) of section 2306b of title 10, United
States Code, with respect to that contract may only be
submitted if the certification includes an additional
certification that each of the conditions specified in
subsection (a) of that section has been satisfied with respect
to that contract.
(c) Congressional Notice-and-Wait Period.--Upon
transmission to Congress of a certification referred to in
subsection (b) with respect to a contract authorized by
subsection (a), the contract may then be entered into only
after a period of 30 days has elapsed after the date of the
transmission of such certification.

SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

The production rate for V-22 Osprey aircraft may not be
increased above the minimum sustaining production rate for
which funds are authorized to be appropriated by this Act until
the Secretary of Defense certifies to Congress that successful
operational testing of the aircraft demonstrates that--
(1) the solutions to the problems regarding the
reliability of hydraulic system components and flight
control software that were identified by the panel
appointed by the Secretary of Defense on January 5,
2001, to review the V-22 aircraft program are adequate
to achieve low risk for crews and passengers aboard V-
22 aircraft that are operating under operational
conditions;
(2) the V-22 aircraft can achieve reliability and
maintainability levels that are sufficient for the
aircraft to achieve operational availability at the
level required for fleet aircraft;
(3) the V-22 aircraft will be operationally
effective--
(A) when employed in operations with other
V-22 aircraft; and
(B) when employed in operations with other
types of aircraft; and
(4) the V-22 aircraft can be operated effectively,
taking into consideration the downwash effects inherent
in the operation of the aircraft, when the aircraft--
(A) is operated in remote areas with
unimproved terrain and facilities;
(B) is deploying and recovering personnel--
(i) while hovering within the zone
of ground effect; and
(ii) while hovering outside the
zone of ground effect; and
(C) is operated with external loads.

SEC. 124. REPORT ON STATUS OF V-22 OSPREY AIRCRAFT BEFORE RESUMPTION OF
FLIGHT TESTING.

Not later than 30 days before the resumption of flight
testing of the V-22 Osprey aircraft, the Secretary of Defense
shall submit to Congress a report containing the following:
(1) A comprehensive description of the status of
the hydraulics system and flight control software of
the V-22 Osprey aircraft, including--
(A) a description and analysis of any
deficiencies in the hydraulics system and
flight control software of the V-22 Osprey
aircraft; and
(B) a description and assessment of the
actions taken to redress each such deficiency.
(2) A description of the current actions, and any
proposed actions, of the Department of Defense to
implement the recommendations of the panel appointed by
the Secretary of Defense on January 5, 2001, to review
the V-22 aircraft program.
(3) An assessment of the recommendations of the
National Aeronautics and Space Administration on
tiltrotor aeromechanics provided in a briefing to the
Undersecretary of Defense for Acquisition, Logistics,
and Technology on August 14, 2001.
(4) Notice of the waiver, if any, of any item
capability or any other requirement specified in the
Joint Operational Requirements Document for the V-22
Osprey aircraft, including a justification of each such
waiver.

Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 AIRCRAFT.

(a) Multiyear Authority.--Beginning with the 2002 program
year, the Secretary of the Air Force may enter into a multiyear
contract for the procurement of up to 60 C-17 aircraft. Such a
contract shall be entered into in accordance with section 2306b
of title 10, United States Code, except that, notwithstanding
subsection (k) of such section, such a contract may be for a
period of six program years.
(b) Required Certifications.--In the case of a contract
authorized by subsection (a) of this section, a certification
under subsection (i)(1)(A) of section 2306b of title 10, United
States Code, with respect to that contract may only be
submitted if the certification includes an additional
certification that each of the conditions specified in
subsection (a) of that section has been satisfied with respect
to that contract.
(c) Congressional Notice-and-Wait Period.--Upon
transmission to Congress of a certification referred to in
subsection (b) with respect to a contract authorized by
subsection (a), the contract may then be entered into only
after a period of 30 days has elapsed after the date of the
transmission of such certification.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

Subtitle B--Program Requirements, Restrictions, and Limitations

Subtitle C--Ballistic Missile Defense

Subtitle D--Air Force Science and Technology for the 21st Century

Sec. 251. Short title.
Sec. 252. Science and technology investment and development planning.
Sec. 253. Study and report on effectiveness of Air Force science and
technology program changes.

Subtitle E--Other Matters

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal
year 2002 for the use of the Department of Defense for
research, development, test, and evaluation as follows:
(1) For the Army, $6,675,325,000.
(2) For the Navy, $10,784,264,000.
(3) For the Air Force, $14,407,187,000.
(4) For Defense-wide activities, $14,593,995,000,
of which $221,355,000 is authorized for the Director of
Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

(a) Fiscal Year 2002.--Of the amounts authorized to be
appropriated by section 201, $5,070,605,000 shall be available
for basic research and applied research projects.
(b) Basic Research and Applied Research Defined.--For
purposes of this section, the term ``basic research and applied
research'' means work funded in program elements for defense
research and development under Department of Defense category
6.1 or 6.2.

SEC. 203. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR
2001 FOR RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION, DEFENSE-WIDE.

In addition to the funds authorized to be appropriated
under section 201(4) of Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-32), there is hereby
authorized to be appropriated $1,000,000 for fiscal year 2001
for the use of the Department of Defense for research,
development, test, and evaluation, for Defense-wide activities.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. NAVAL SURFACE FIRE SUPPORT ASSESSMENT.

(a) Assessment Required.--The Secretary of Defense shall
carry out an assessment of the requirements for naval surface
fire support of ground forces operating in the littoral
environment, including the role of an advanced fire support
missile system for Navy combatant vessels. The matters assessed
shall include the Secretary of the Navy's program plan,
schedule, and funding for meeting such requirements.
(b) Report.--Not later than March 31, 2002, the Secretary
of Defense shall submit to the congressional defense committees
a report containing the results of the assessment required by
subsection (a).

SEC. 212. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ADVANCED RADAR
SYSTEMS.

(a) Program Required.--The Secretary of Defense shall carry
out a program to develop and demonstrate advanced technologies
and concepts leading to advanced radar systems for naval and
other applications.
(b) Description of Program.--The program under subsection
(a) shall be carried out collaboratively by the Director of
Defense Research and Engineering, the Secretary of the Navy,
the Director of the Defense Advanced Research Projects Agency,
and other appropriate elements of the Department of Defense.
The program shall include the following activities:
(1) Activities needed for development and
maturation of the technologies for advanced electronics
materials to extend the range and sensitivity of
radars.
(2) Identification of acquisition systems for use
of the new technology.
(c) Report.--Not later than March 31, 2002, the Director of
Defense Research and Engineering shall submit to the
congressional defense committees a report on the implementation
of the program under subsection (a). The report shall include
the following:
(1) A description of the management plan for the
program and any agreements relating to that plan.
(2) A schedule for the program.
(3) Identification of the funding required for
fiscal year 2003 and for the future-years defense
program to carry out the program.
(4) A list of program capability goals and
objectives.

SEC. 213. REPEAL OF LIMITATIONS ON TOTAL COST OF ENGINEERING AND
MANUFACTURING DEVELOPMENT FOR F-22 AIRCRAFT
PROGRAM.

(a) Repeal.--The following provisions of law are repealed:
(1) Section 217(a) of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1660).
(2) Section 8125 of the Department of Defense
Appropriations Act, 2001 (Public Law 106-259; 114 Stat.
702).
(3) Section 219(b) of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat.
1654A-38).
(b) Conforming Amendments.--(1) Section 217 of the National
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1660), as amended by subsection (a)(1), is
further amended--
(A) in subsection (c)--
(i) by striking ``limitations set forth in
subsections (a) and (b)'' and inserting
``limitation set forth in subsection (b)''; and
(ii) by striking paragraph (3); and
(B) in subsection (d)(2), by striking subparagraphs
(D) and (E).
(2) Section 131 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 536) is
amended--
(A) in subsection (a)(2), by striking ``That the''
and all that follows through ``respectively,'' and
inserting ``That the production phase for that program
can be executed within the limitation on total cost
applicable to that program under subsection (b)''; and
(B) in subsection (b)(3), by striking ``for the
remainder of the engineering and manufacturing
development phase and''.

SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

Section 217(a) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-36) is amended by striking
``funds authorized to be appropriated by this Act may not'' and
inserting ``no funds authorized to be appropriated to the
Department of Defense for fiscal year 2002 may''.

SEC. 215. COOPERATIVE DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS
AFFAIRS MEDICAL RESEARCH PROGRAM.

Of the funds authorized to be appropriated by section
201(4), $2,500,000 shall be available for the cooperative
Department of Defense/Department of Veterans Affairs medical
research program. The Secretary of Defense shall transfer such
amount to the Secretary of Veterans Affairs for such purpose
not later than 30 days after the date of the enactment of this
Act.

SEC. 216. C-5 AIRCRAFT RELIABILITY ENHANCEMENT AND REENGINING PROGRAM.

(a) Kit Development.--The Secretary of the Air Force shall
ensure that engineering manufacturing and development under the
C-5 aircraft reliability enhancement and reengining program
includes kit development for at least one C-5A aircraft.
(b) Aircraft To Be Used for Kit Development.--The C-5A
aircraft to be used for purposes of the kit development under
subsection (a) shall be an aircraft from among the 74 C-5A
aircraft of the Air Force.

Subtitle C--Ballistic Missile Defense

SEC. 231. TRANSFER OF RESPONSIBILITY FOR PROCUREMENT FOR MISSILE
DEFENSE PROGRAMS FROM BALLISTIC MISSILE DEFENSE
ORGANIZATION TO MILITARY DEPARTMENTS.

(a) Budgeting of Missile Defense Procurement Authority.--
Section 224 of title 10, United States Code is amended--
(1) in subsection (a), by striking ``procurement''
both places it appears and inserting ``research,
development, test, and evaluation''; and
(2) by striking subsections (b) and (c) and
inserting the following:
``(b) Transfer Criteria.--(1) The Secretary of Defense
shall establish criteria for the transfer of responsibility for
a ballistic missile defense program from the Director of the
Ballistic Missile Defense Organization to the Secretary of a
military department. The criteria established for such a
transfer shall, at a minimum, address the following:
``(A) The technical maturity of the program.
``(B) The availability of facilities for
production.
``(C) The commitment of the Secretary of the
military department concerned to procurement funding
for that program, as shown by funding through the
future-years defense program and other defense planning
documents.
``(2) The Secretary shall submit the criteria established,
and any modifications to those criteria, to the congressional
defense committees.
``(c) Notification of Transfer.--Before responsibility for
a ballistic missile defense program is transferred from the
Director of the Ballistic Missile Defense Organization to the
Secretary of a military department, the Secretary of Defense
shall submit to the congressional defense committees notice in
writing of the Secretary's intent to make that transfer. The
Secretary shall include with such notice a certification that
the program has met the criteria established under subsection
(b) for such a transfer. The transfer may then be carried out
after the end of the 60-day period beginning on the date of
such notice.
``(d) Conforming Budget and Planning Transfers.--When a
ballistic missile defense program is transferred from the
Ballistic Missile Defense Organization to the Secretary of a
military department in accordance with this section, the
Secretary of Defense shall ensure that all appropriate
conforming changes are made to proposed or projected funding
allocations in the future-years defense program under section
221 of this title and other Department of Defense program,
budget, and planning documents.
``(e) Follow-on Research, Development, Test, and
Evaluation.--The Secretary of Defense shall ensure that, before
a ballistic missile defense program is transferred from the
Director of the Ballistic Missile Defense Organization to the
Secretary of a military department, roles and responsibilities
for research, development, test, and evaluation related to
system improvements for that program are clearly defined.
``(f) Congressional Defense Committees.--In this section,
the term `congressional defense committees' means the
following:
``(1) The Committee on Armed Services and the
Committee on Appropriations of the Senate.
``(2) The Committee on Armed Services and the
Committee on Appropriations of the House of
Representatives.''.
(b) Clerical Amendments.--(1) The heading of that section
is amended to read as follows:

``Sec. 224. Ballistic missile defense programs: display of amounts for
research, development, test, and evaluation''.

(2) The item relating to that section in the table of
sections at the beginning of chapter 9 of such title is amended
to read as follows:

``224. Ballistic missile defense programs: display of amounts for
research, development, test, and evaluation.''.

SEC. 232. PROGRAM ELEMENTS FOR BALLISTIC MISSILE DEFENSE ORGANIZATION.

(a) Revision in Program Elements.--Subsection (a) of
section 223 of title 10, United States Code, is amended--
(1) by striking ``in accordance with the following
program elements:'' and inserting ``in accordance with
program elements governing functional areas as
follows:''; and
(2) by striking paragraphs (1) through (12) and
inserting the following:
``(1) Technology.
``(2) Ballistic Missile Defense System.
``(3) Terminal Defense Segment.
``(4) Midcourse Defense Segment.
``(5) Boost Defense Segment.
``(6) Sensors Segment.''.
(b) Additional Requirements.--Subsection (b) of such
section is amended to read as follows:
``(b) Separate Program Elements for Programs Entering
Engineering and Manufacturing Development.--(1) The Secretary
of Defense shall ensure that each ballistic missile defense
program that enters engineering and manufacturing development
is assigned a separate, dedicated program element.
``(2) In this subsection, the term `engineering and
manufacturing development' means the development phase whose
primary objectives are to--
``(A) translate the most promising design approach
into a stable, interoperable, producible, supportable,
and cost-effective design;
``(B) validate the manufacturing or production
process; and
``(C) demonstrate system capabilities through
testing.''.
(c) Requirement for Annual Program Goals.--(1) The
Secretary of Defense shall each year establish cost, schedule,
testing, and performance goals for the ballistic missile
defense programs of the Department of Defense for the period
covered by the future-years defense program that is submitted
to Congress that year under section 221 of title 10, United
States Code. Not later than February 1 each year, the Secretary
shall submit to the congressional defense committees a
statement of the goals so established.
(2) The statement of goals submitted under paragraph (1)
for any year after 2002 shall be an update of the statement
submitted under that paragraph for the preceding year.
(3) Each statement of goals submitted under paragraph (1)
shall set forth cost, schedule, testing, and performance goals
that pertain to each functional area program element identified
in subsection (a), and each program element identified in
subsection (b), of section 223 of title 10, United States Code.
(d) Annual Program Plan.--(1) With the submission of the
statement of goals under subsection (c) for any year, the
Secretary of Defense shall submit to the congressional defense
committees a program of activities planned to be carried out
for each missile defense program that enters engineering and
manufacturing development (as defined in section 223(b)(2) of
title 10, United States Code, as added by subsection (b)).
(2) Each program plan under paragraph (1) shall include the
following:
(A) A funding profile that includes an estimate
of--
(i) the total expenditures to be made in
the fiscal year in which the plan is submitted
and the following fiscal year, together with
the estimated total life-cycle costs of the
program; and
(ii) a display of such expenditures (shown
for significant procurement, construction, and
research and development) for the fiscal year
in which the plan is submitted and the
following fiscal year.
(B) A program schedule for the fiscal year in which
the plan is submitted and the following fiscal year for
each of the following:
(i) Significant procurement.
(ii) Construction.
(iii) Research and development.
(iv) Flight tests.
(v) Other significant testing activities.
(3) Information specified in paragraph (2) need not be
included in the plan for any year under paragraph (1) to the
extent such information has already been provided, or will be
provided in the current fiscal year, in annual budget
justification documents of the Department of Defense submitted
to Congress or in other required reports to Congress.
(e) Internal DOD Reviews.--(1) The officials and elements
of the Department of Defense specified in paragraph (2) shall
on an ongoing basis--
(A) review the development of goals under
subsection (c) and the annual program plan under
subsection (d); and
(B) provide to the Secretary of Defense and the
Director of the Ballistic Missile Defense Organization
any comments on such matters as considered appropriate.
(2) Paragraph (1) applies with respect to the following:
(A) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
(B) The Director of Operational Test and
Evaluation.
(C) The Director of Program Analysis and
Evaluation.
(D) The Joint Requirements Oversight Council.
(E) The Cost Analysis and Improvement Group.
(f) Demonstration of Critical Technologies.--(1) The
Director of the Ballistic Missile Defense Organization shall
develop a plan for ensuring that each critical technology for a
missile defense program is successfully demonstrated in an
appropriate environment before that technology enters into
operational service as part of a missile defense program.
(2) The Director of Operational Test and Evaluation of the
Department of Defense shall monitor the development of the plan
under paragraph (1) and shall submit to the Director of the
Ballistic Missile Defense Organization any comments regarding
that plan that the Director of Operational Test and Evaluation
considers appropriate.
(g) Comptroller General Assessment.--(1) At the conclusion
of each of fiscal years 2002 and 2003, the Comptroller General
of the United States shall assess the extent to which the
Ballistic Missile Defense Organization achieved the goals
established under subsection (c) for such fiscal year.
(2) Not later than February 15, 2003, and February 15,
2004, the Comptroller General shall submit to the congressional
defense committees a report on the Comptroller General's
assessment under paragraph (1) with respect to the preceding
fiscal year.
(h) Annual OT&E Assessment of Test Program.--(1) The
Director of Operational Test and Evaluation shall each year
assess the adequacy and sufficiency of the Ballistic Missile
Defense Organization test program during the preceding fiscal
year.
(2) Not later than February 15 each year the Director shall
submit to the congressional defense committees a report on the
assessment under paragraph (1) with respect to the preceding
fiscal year.

SEC. 233. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF THE
DEPARTMENT OF DEFENSE BY THE NATIONAL DEFENSE
LABORATORIES OF THE DEPARTMENT OF ENERGY.

(a) Funds To Carry Out Certain Ballistic Missile Defense
Activities.--Of the amounts authorized to be appropriated to
the Department of Defense pursuant to section 201(4),
$25,000,000 shall be available, subject to subsection (b) and
at the discretion of the Director of the Ballistic Missile
Defense Organization, for research, development, and
demonstration activities at the national laboratories of the
Department of Energy in support of the missions of the
Ballistic Missile Defense Organization, including the following
activities:
(1) Technology development, concept demonstration,
and integrated testing to enhance performance, reduce
risk, and improve reliability in hit-to-kill
interceptors for ballistic missile defense.
(2) Support for science and engineering teams to
assess critical technical problems and prudent
alternative approaches as agreed upon by the Director
of the Ballistic Missile Defense Organization and the
Administrator for Nuclear Security.
(b) Requirement for Matching Funds From NNSA.--Funds shall
be available as provided in subsection (a) only if the
Administrator for Nuclear Security makes available matching
funds for the activities referred to in subsection (a).
(c) Memorandum of Understanding.--The activities referred
to in subsection (a) shall be carried out under the memorandum
of understanding entered into by the Secretary of Energy and
the Secretary of Defense for the use of national laboratories
for ballistic missile defense programs, as required by section
3131 of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105-85; 111 Stat. 2034) and modified pursuant
to section 3132 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-455) to provide for jointly
funded projects.

SEC. 234. MISSILE DEFENSE TESTING INITIATIVE.

(a) Testing Infrastructure.--(1) The Secretary of Defense
shall ensure that each annual budget request of the Department
of Defense--
(A) is designed to provide for comprehensive
testing of ballistic missile defense programs during
early stages of development; and
(B) includes necessary funding to support and
improve test infrastructure and provide adequate test
assets for the testing of such programs.
(2) The Secretary shall ensure that ballistic missile
defense programs incorporate, to the greatest possible extent,
operationally realistic test configurations (referred to as
``test bed'' configurations) to demonstrate system performance
across a broad range of capability and, during final stages of
operational testing, to demonstrate reliable performance.
(3) The Secretary shall ensure that the test infrastructure
for ballistic missile defense programs is capable of supporting
continued testing of ballistic missile defense systems after
deployment.
(b) Requirements for Early Stages of System Development.--
In order to demonstrate acceptable risk and developmental
stability, the Secretary of Defense shall ensure that any
ballistic missile defense program incorporates, to the maximum
extent practicable, the following elements during the early
stages of system development:
(1) Pursuit of parallel conceptual approaches and
technological paths for all critical problematic
components until effective and reliable solutions can
be demonstrated.
(2) Comprehensive ground testing in conjunction
with flight-testing for key elements of the proposed
system that are considered to present high risk, with
such ground testing to make use of existing facilities
and combinations of facilities that support testing at
the highest possible levels of integration.
(3) Where appropriate, expenditures to enhance the
capabilities of existing test facilities, or to
construct new test facilities, to support alternative
complementary test methodologies.
(4) Sufficient funding of test instrumentation to
ensure accurate measurement of all critical test
events.
(5) Incorporation into the program of sufficient
schedule flexibility and expendable test assets,
including missile interceptors and targets, to ensure
that failed or aborted tests can be repeated in a
prudent, but expeditious manner.
(6) Incorporation into flight-test planning for the
program, where possible, of--
(A) methods that make the most cost-
effective use of test opportunities;
(B) events to demonstrate engagement of
multiple targets, ``shoot-look-shoot'', and
other planned operational concepts; and
(C) exploitation of opportunities to
facilitate early development and demonstration
of ``family of systems'' concepts.
(c) Specific Requirements for Ground-Based Mid-Course
Interceptor Systems.--For ground-based mid-course interceptor
systems, the Secretary of Defense shall initiate steps during
fiscal year 2002 to establish a flight-test capability of
launching not less than three missile defense interceptors and
not less than two ballistic missile targets to provide a
realistic test infrastructure.

SEC. 235. CONSTRUCTION OF TEST BED FACILITIES FOR MISSILE DEFENSE
SYSTEM.

(a) Authority To Acquire or Construct Facilities.--(1) The
Secretary of Defense, using funds appropriated to the
Department of Defense for research, development, test, and
evaluation for fiscal years after fiscal year 2001 that are
available for programs of the Ballistic Missile Defense
Organization, may carry out all construction projects, or
portions of construction projects, including projects for the
acquisition, improvement, or construction of facilities,
necessary to establish and operate the Missile Defense System
Test Bed.
(2) The authority provided in subsection (a) may be used to
acquire, improve, or construct facilities at a total cost not
to exceed $500,000,000.
(b) Authority To Provide Assistance to Local Communities.--
(1) Subject to paragraph (2), the Secretary of Defense, using
funds appropriated to the Department of Defense for research,
development, test, and evaluation for fiscal year 2002 that are
available for programs of the Ballistic Missile Defense
Organization, may provide assistance to local communities to
meet the need for increased municipal or community services or
facilities resulting from the construction, installation, or
operation of the Missile Defense System Test Bed Facilities.
Such assistance may be provided by grant or otherwise.
(2) Assistance may be provided to a community under
paragraph (1) only if the Secretary of Defense determines that
there is an immediate and substantial increase in the need for
municipal or community services or facilities as a direct
result of the construction, installation, or operation of the
Missile Defense System Test Bed Facilities.

Subtitle D--Air Force Science and Technology for the 21st Century

SEC. 251. SHORT TITLE.

This subtitle may be cited as the ``Air Force Science and
Technology for the 21st Century Act''.

SEC. 252. SCIENCE AND TECHNOLOGY INVESTMENT AND DEVELOPMENT PLANNING.

(a) Sense of Congress.--It is the sense of Congress that
the Secretary of the Air Force should carry out each of the
following:
(1) Continue and improve efforts to ensure that--
(A) the Air Force science and technology
community is represented, and the
recommendations of that community are
considered, at all levels of program planning
and budgetary decisionmaking within the Air
Force;
(B) advocacy for science and technology
development is institutionalized across all
levels of Air Force management in a manner that
is not dependent on individuals; and
(C) the value of Air Force science and
technology development is made increasingly
apparent to the warfighters, by linking the
needs of those warfighters with decisions on
science and technology development.
(2) Complete and adopt a policy directive that
provides for changes in how the Air Force makes
budgetary and nonbudgetary decisions with respect to
its science and technology development programs and how
it carries out those programs.
(3) At least once every five years, conduct a
review of the long-term challenges and short-term
objectives of the Air Force science and technology
programs that is consistent with the review specified
in section 252 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398; 114 Stat. 1654A-46).
(4) Ensure that development and science and
technology planning and investment activities are
carried out for future space warfighting systems and
for future nonspace warfighting systems in an
integrated manner.
(5) Elevate the position within the Office of the
Secretary of the Air Force that has primary
responsibility for budget and policy decisions for
science and technology programs.
(b) Reinstatement of Development Planning.--(1) The
Secretary of the Air Force shall reinstate and implement a
revised development planning process that provides for each of
the following:
(A) Coordinating the needs of Air Force warfighters
with decisions on science and technology development.
(B) Giving input into the establishment of
priorities among science and technology programs.
(C) Analyzing Air Force capability options for the
allocation of Air Force resources.
(D) Developing concepts for technology, warfighting
systems, and operations with which the Air Force can
achieve its critical future goals.
(E) Evaluating concepts for systems and operations
that leverage technology across Air Force
organizational boundaries.
(F) Ensuring that a ``system-of-systems'' approach
is used in carrying out the various Air Force
capability planning exercises.
(G) Utilizing existing analysis capabilities within
the Air Force product centers in a collaborative and
integrated manner.
(2) Not later than one year after the date of the enactment
of this Act, the Secretary of the Air Force shall submit to
Congress a report on the implementation of the planning process
required by paragraph (1). The report shall include the annual
amount that the Secretary considers necessary to carry out
paragraph (1).

SEC. 253. STUDY AND REPORT ON EFFECTIVENESS OF AIR FORCE SCIENCE AND
TECHNOLOGY PROGRAM CHANGES.

(a) Requirement.--The Secretary of the Air Force, in
cooperation with the National Research Council of the National
Academy of Sciences, shall carry out a study to determine how
the changes to the Air Force science and technology program
implemented during the past two years affect the future
capabilities of the Air Force.
(b) Matters Studied.--(1) The study shall review and assess
whether such changes as a whole are sufficient to ensure the
following:
(A) That the concerns about the management of the
science and technology program that have been raised by
Congress, the Defense Science Board, the Air Force
Science Advisory Board, and the Air Force Association
have been adequately addressed.
(B) That appropriate and sufficient technology is
available to ensure the military superiority of the
United States and counter future high-risk threats.
(C) That the science and technology investments are
balanced to meet the near-, mid-, and long-term needs
of the Air Force.
(D) That technologies are made available that can
be used to respond flexibly and quickly to a wide range
of future threats.
(E) That the Air Force organizational structure
provides for a sufficiently senior level advocate of
science and technology to ensure an ongoing, effective
presence of the science and technology community during
the budget and planning process.
(2) In addition, the study shall assess the specific
changes to the Air Force science and technology program as
follows:
(A) Whether the biannual science and technology
summits provide sufficient visibility into, and
understanding and appreciation of, the value of the
science and technology program to the senior level of
Air Force budget and policy decisionmakers.
(B) Whether the applied technology councils are
effective in contributing the input of all levels
beneath the senior leadership into the coordination,
focus, and content of the science and technology
program.
(C) Whether the designation of the commander of the
Air Force Materiel Command as the science and
technology budget advocate is effective to ensure that
an adequate Air Force science and technology budget is
requested.
(D) Whether the revised development planning
process is effective to aid in the coordination of the
needs of the Air Force warfighters with decisions on
science and technology investments and the
establishment of priorities among different science and
technology programs.
(E) Whether the implementation of section 252 of
the Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (as enacted into law by Public Law
106-398; 114 Stat. 1654A-46) is effective to identify
the basis for the appropriate science and technology
program funding level and investment portfolio.
(c) Report.--Not later than May 1, 2003, the Secretary of
the Air Force shall submit to Congress the results of the
study.

Subtitle E--Other Matters

SEC. 261. ESTABLISHMENT OF UNMANNED AERIAL VEHICLE JOINT OPERATIONAL
TEST BED SYSTEM.

(a) Establishment of Test Bed System.--The commander of the
United States Joint Forces Command shall establish a government
flight activity capability (referred to as a ``test bed'')
within the facilities and resources of that command to evaluate
and ensure joint interoperability of unmanned aerial vehicle
systems. That capability shall be independent of the military
departments and shall be managed directly by the Joint Forces
Command.
(b) Priority for Use of Predator Assets.--The Secretary of
the Navy shall ensure that the commander of the United States
Joint Forces Command controls the priority for use of the two
Predator unmanned aerial vehicles currently undergoing
operational testing by the Navy, together with associated
payloads and antennas and the associated tactical control
system (TCS) ground station.
(c) Use by Joint Forces Command.--The items specified to in
subsection (b) may be used by the commander of the United
States Joint Forces Command only through the independent joint
operational test bed system established pursuant to subsection
(a) for testing of those items, including further development
of the associated tactical control system (TCS) ground station,
other aspects of unmanned aerial vehicle interoperability, and
participation in such experiments and exercises as the
commander considers appropriate to the mission of that command.

SEC. 262. DEMONSTRATION PROJECT TO INCREASE SMALL BUSINESS AND
UNIVERSITY PARTICIPATION IN OFFICE OF NAVAL
RESEARCH EFFORTS TO EXTEND BENEFITS OF SCIENCE AND
TECHNOLOGY RESEARCH TO FLEET.

(a) Project Required.--The Secretary of the Navy, acting
through the Chief of Naval Research, shall carry out a
demonstration project to increase access to Navy facilities of
small businesses and universities that are engaged in science
and technology research beneficial to the fleet.
(b) Project Elements.--In carrying out the demonstration
project, the Secretary shall--
(1) establish and operate a Navy Technology
Extension Center at a location to be selected by the
Secretary;
(2) permit participants in the Small Business
Innovation Research Program (SBIR) and Small Business
Technology Transfer Program (STTR) that are awarded
contracts by the Office of Naval Research to access and
use Navy Major Range Test Facilities Base (MRTFB)
facilities selected by the Secretary for purposes of
carrying out such contracts, and charge such
participants for such access and use at the same
established rates that Department of Defense customers
are charged; and
(3) permit universities, institutions of higher
learning, and federally funded research and development
centers collaborating with participants referred to in
paragraph (2) to access and use such facilities for
such purposes, and charge such entities for such access
and use at such rates.
(c) Period of Project.--The demonstration project shall be
carried out during the three-year period beginning on the date
of the enactment of this Act.
(d) Report.--Not later than February 1, 2004, the Secretary
shall submit to Congress a report on the demonstration project.
The report shall include a description of the activities
carried out under the demonstration project and any
recommendations for the improvement or expansion of the
demonstration project that the Secretary considers appropriate.

SEC. 263. COMMUNICATION OF SAFETY CONCERNS FROM OPERATIONAL TEST AND
EVALUATION OFFICIALS TO PROGRAM MANAGERS.

Section 139 of title 10, United States Code, is amended--
(1) by redesignating subsections (f) through (i) as
subsections (g) through (j), respectively; and
(2) by inserting after subsection (e) the following
new subsection:
``(f) The Director shall ensure that safety concerns
developed during the operational test and evaluation of a
weapon system under a major defense acquisition program are
communicated in a timely manner to the program manager for that
program for consideration in the acquisition decisionmaking
process.''.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Subtitle B--Environmental Provisions

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Subtitle D--Workforce and Depot Issues

Subtitle E--Defense Dependents Education

Subtitle F--Other Matters

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

(a) Authorization of Appropriations.--Funds are hereby
authorized to be appropriated for fiscal year 2002 for the use
of the Armed Forces and other activities and agencies of the
Department of Defense for expenses, not otherwise provided for,
for operation and maintenance, in amounts as follows:
(1) For the Army, $20,653,241,000.
(2) For the Navy, $26,461,299,000.
(3) For the Marine Corps, $2,872,524,000.
(4) For the Air Force, $25,598,767,000.
(5) For Defense-wide activities, $11,949,586,000.
(6) For the Army Reserve, $1,824,146,000.
(7) For the Naval Reserve, $1,000,050,000.
(8) For the Marine Corps Reserve, $142,853,000.
(9) For the Air Force Reserve, $2,029,866,000.
(10) For the Army National Guard, $3,696,559,000.
(11) For the Air National Guard, $3,967,361,000.
(12) For the Defense Inspector General,
$149,221,000.
(13) For the United States Court of Appeals for the
Armed Forces, $9,096,000.
(14) For Environmental Restoration, Army,
$389,800,000.
(15) For Environmental Restoration, Navy,
$257,517,000.
(16) For Environmental Restoration, Air Force,
$385,437,000.
(17) For Environmental Restoration, Defense-wide,
$23,492,000.
(18) For Environmental Restoration, Formerly Used
Defense Sites, $230,255,000.
(19) For Overseas Humanitarian, Disaster, and Civic
Aid programs, $49,700,000.
(20) For Drug Interdiction and Counter-drug
Activities, Defense-wide, $820,381,000.
(21) For the Kaho'olawe Island Conveyance,
Remediation, and Environmental Restoration Trust Fund,
$40,000,000.
(22) For Defense Health Program, $17,570,750,000.
(23) For Cooperative Threat Reduction programs,
$403,000,000.
(24) For Overseas Contingency Operations Transfer
Fund, $2,844,226,000.
(25) For Support for International Sporting
Competitions, Defense, $15,800,000.
(b) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (5) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $125,000,000, which
represents savings resulting from reduced energy costs.

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal
year 2002 for the use of the Armed Forces and other activities
and agencies of the Department of Defense for providing capital
for working capital and revolving funds in amounts as follows:
(1) For the Defense Working Capital Funds,
$1,656,396,000.
(2) For the National Defense Sealift Fund,
$407,708,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

(a) Amount for Fiscal Year 2002.--There is hereby
authorized to be appropriated for fiscal year 2002 from the
Armed Forces Retirement Home Trust Fund the sum of $71,440,000
for the operation of the Armed Forces Retirement Home.
(b) Availability of Amounts Previously Appropriated.--Of
amounts appropriated from the Armed Forces Retirement Home
Trust Fund for fiscal year 2002 (and previous fiscal years to
the extent such amounts remain unobligated), $22,400,000 shall
be available, subject to the review and approval of the
Secretary of Defense, for the development and construction of a
blended use, multicare facility at the Naval Home and for the
acquisition of a parcel of real property adjacent to the Naval
Home consisting of approximately 15 acres.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

(a) Transfer Authority.--To the extent provided in
appropriations Acts, not more than $150,000,000 is authorized
to be transferred from the National Defense Stockpile
Transaction Fund to operation and maintenance accounts for
fiscal year 2002 in amounts as follows:
(1) For the Army, $50,000,000.
(2) For the Navy, $50,000,000.
(3) For the Air Force, $50,000,000.
(b) Treatment of Transfers.--Amounts transferred under this
section--
(1) shall be merged with, and be available for the
same purposes and the same period as, the amounts in
the accounts to which transferred; and
(2) may not be expended for an item that has been
denied authorization of appropriations by Congress.
(c) Relationship to Other Transfer Authority.--The transfer
authority provided in this section is in addition to the
transfer authority provided in section 1001.

SEC. 305. FUNDS FOR RENOVATION OF DEPARTMENT OF VETERANS AFFAIRS
FACILITIES ADJACENT TO NAVAL TRAINING CENTER, GREAT
LAKES, ILLINOIS.

(a) Availability of Funds for Renovation.--Subject to
subsection (b), of the amount authorized to be appropriated by
section 301(a)(2) for operation and maintenance for the Navy,
the Secretary of the Navy may make available to the Secretary
of Veterans Affairs up to $2,000,000 for relocation of
Department of Veterans Affairs activities and associated
renovation of existing facilities at the North Chicago
Department of Veterans Affairs Medical Center, Illinois.
(b) Limitation.--The Secretary of the Navy may make funds
available under subsection (a) only after the Secretary of the
Navy and the Secretary of Veterans Affairs enter into an
appropriate agreement for the use by the Secretary of the Navy
of approximately 48 acres of real property at the North Chicago
Department of Veterans Affairs property referred to in
subsection (a) for expansion of the Naval Training Center,
Great Lakes, Illinois.

SEC. 306. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER EXPANDED
ARABIC LANGUAGE PROGRAM.

Of the amount authorized to be appropriated by section
301(a)(1) for operation and maintenance for the Army, $650,000
may be available for the Defense Language Institute Foreign
Language Center for an expanded Arabic language program.

Subtitle B--Environmental Provisions

SEC. 311. INVENTORY OF UNEXPLODED ORDNANCE, DISCARDED MILITARY
MUNITIONS, AND MUNITIONS CONSTITUENTS AT DEFENSE
SITES (OTHER THAN OPERATIONAL RANGES).

(a) Inventory Required.--(1) Chapter 160 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 2710. Inventory of unexploded ordnance, discarded military
munitions, and munitions constituents at defense
sites (other than operational ranges)

``(a) Inventory Required.--(1) The Secretary of Defense
shall develop and maintain an inventory of defense sites that
are known or suspected to contain unexploded ordnance,
discarded military munitions, or munitions constituents.
``(2) The information in the inventory for each defense
site shall include, at a minimum, the following:
``(A) A unique identifier for the defense site.
``(B) An appropriate record showing the location,
boundaries, and extent of the defense site, including
identification of the State and political subdivisions
of the State in which the defense site is located and
any Tribal lands encompassed by the defense site.
``(C) Known persons and entities, other than a
military department, with any current ownership
interest or control of lands encompassed by the defense
site.
``(D) Any restrictions or other land use controls
currently in place at the defense site that might
affect the potential for public and environmental
exposure to the unexploded ordnance, discarded military
munitions, or munitions constituents.
``(b) Site Prioritization.--(1) The Secretary shall
develop, in consultation with representatives of the States and
Indian Tribes, a proposed protocol for assigning to each
defense site a relative priority for response activities
related to unexploded ordnance, discarded military munitions,
and munitions constituents based on the overall conditions at
the defense site. After public notice and comment on the
proposed protocol, the Secretary shall issue a final protocol
and shall apply the protocol to defense sites listed on the
inventory. The level of response priority assigned the site
shall be included with the information required by subsection
(a)(2).
``(2) In assigning the response priority for a defense site
on the inventory, the Secretary shall primarily consider
factors relating to safety and environmental hazard potential,
such as the following:
``(A) Whether there are known, versus suspected,
unexploded ordnance, discarded military munitions, or
munitions constituents on all or any portion of the
defense site and the types of unexploded ordnance,
discarded military munitions, or munitions constituents
present or suspected to be present.
``(B) Whether public access to the defense site is
controlled, and the effectiveness of these controls.
``(C) The potential for direct human contact with
unexploded ordnance, discarded military munitions, or
munitions constituents at the defense site and evidence
of people entering the site.
``(D) Whether a response action has been or is
being undertaken at the defense site under the Formerly
Used Defense Sites program or other program.
``(E) The planned or mandated dates for transfer of
the defense site from military control.
``(F) The extent of any documented incidents
involving unexploded ordnance, discarded military
munitions, or munitions constituents at or from the
defense site, including incidents involving explosions,
discoveries, injuries, reports, and investigations.
``(G) The potential for drinking water
contamination or the release of munitions constituents
into the air.
``(H) The potential for destruction of sensitive
ecosystems and damage to natural resources.
``(3) The priority assigned to a defense site included on
the inventory shall not impair, alter, or diminish any
applicable Federal or State authority to establish requirements
for the investigation of, and response to, environmental
problems at the defense site.
``(c) Updates and Availability.--(1) The Secretary shall
annually update the inventory and site prioritization list to
reflect new information that becomes available. The inventory
shall be available in published and electronic form.
``(2) The Secretary shall work with communities adjacent to
a defense site to provide information concerning conditions at
the site and response activities. At a minimum, the Secretary
shall provide the site inventory information and site
prioritization list to appropriate Federal, State, tribal, and
local officials, and, to the extent the Secretary considers
appropriate, to civil defense or emergency management agencies
and the public.
``(d) Exceptions.--This section does not apply to the
following:
``(1) Any locations outside the United States.
``(2) The presence of military munitions resulting
from combat operations.
``(3) Operating storage and manufacturing
facilities.
``(4) Operational ranges.
``(e) Definitions.--In this section:
``(1) The term `defense site' applies to locations
that are or were owned by, leased to, or otherwise
possessed or used by the Department of Defense. The
term does not include any operational range, operating
storage or manufacturing facility, or facility that is
used for or was permitted for the treatment or disposal
of military munitions.
``(2) The term `discarded military munitions' means
military munitions that have been abandoned without
proper disposal or removed from storage in a military
magazine or other storage area for the purpose of
disposal. The term does not include unexploded
ordnance, military munitions that are being held for
future use or planned disposal, or military munitions
that have been properly disposed of, consistent with
applicable environmental laws and regulations.
``(3)(A) The term `military munitions' means all
ammunition products and components produced for or used
by the armed forces for national defense and security,
including ammunition products or components under the
control of the Department of Defense, the Coast Guard,
the Department of Energy, and the National Guard. The
term includes confined gaseous, liquid, and solid
propellants, explosives, pyrotechnics, chemical and
riot control agents, smokes, and incendiaries,
including bulk explosives and chemical warfare agents,
chemical munitions, rockets, guided and ballistic
missiles, bombs, warheads, mortar rounds, artillery
ammunition, small arms ammunition, grenades, mines,
torpedoes, depth charges, cluster munitions and
dispensers, demolition charges, and devices and
components thereof.
``(B) The term does not include wholly inert items,
improvised explosive devices, and nuclear weapons,
nuclear devices, and nuclear components, except that
the term does include nonnuclear components of nuclear
devices that are managed under the nuclear weapons
program of the Department of Energy after all required
sanitization operations under the Atomic Energy Act of
1954 (42 U.S.C. 2011 et seq.) have been completed.
``(4) The term `munitions constituents' means any
materials originating from unexploded ordnance,
discarded military munitions, or other military
munitions, including explosive and nonexplosive
materials, and emission, degradation, or breakdown
elements of such ordnance or munitions.
``(5) The term `operational range' means a military
range that is used for range activities, or a military
range that is not currently being used, but that is
still considered by the Secretary to be a range area,
is under the jurisdiction, custody, or control of the
Department of Defense, and has not been put to a new
use that is incompatible with range activities.
``(6) The term `possessions' includes Johnston
Atoll, Kingman Reef, Midway Island, Nassau Island,
Palmyra Island, and Wake Island.
``(7) The term `Secretary' means the Secretary of
Defense.
``(8) The term `State' means the several States,
the District of Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of the Northern Mariana Islands,
and the territories and possessions.
``(9) The term `unexploded ordnance' means military
munitions that--
``(A) have been primed, fused, armed, or
otherwise prepared for action;
``(B) have been fired, dropped, launched,
projected, or placed in such a manner as to
constitute a hazard to operations,
installations, personnel, or material; and
``(C) remain unexploded either by
malfunction, design, or any other cause.
``(10) The term `United States', in a geographic
sense, means the States, territories, and possessions
and associated navigable waters, contiguous zones, and
ocean waters of which the natural resources are under
the exclusive management authority of the United
States.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``2710. Inventory of unexploded ordnance, discarded military munitions,
and munitions constituents at defense sites (other than
operational ranges).''.

(b) Initial Inventory.--The requirements of section 2710 of
title 10, United States Code, as added by subsection (a), shall
be implemented as follows:
(1) The initial inventory required by subsection
(a) of such section shall be completed not later than
May 31, 2003.
(2) The proposed prioritization protocol required
by subsection (b) of such section shall be available
for public comment not later than November 30, 2002.

SEC. 312. ESTABLISHMENT OF NEW PROGRAM ELEMENT FOR REMEDIATION OF
UNEXPLODED ORDNANCE, DISCARDED MILITARY MUNITIONS,
AND MUNITIONS CONSTITUENTS.

Section 2703 of title 10, United States Code, is amended--
(1) by redesignating subsections (b) through (f) as
subsections (c) through (g), respectively; and
(2) by inserting after subsection (a) the following
new subsection (b):
``(b) Program Elements for Ordnance Remediation.--The
Secretary of Defense shall establish a program element for
remediation of unexploded ordnance, discarded military
munitions, and munitions constituents within each environmental
restoration account established under subsection (a). The terms
`unexploded ordnance', `discarded military munitions', and
`munitions constituents' have the meanings given such terms in
section 2710 of this title.''.

SEC. 313. ASSESSMENT OF ENVIRONMENTAL REMEDIATION OF UNEXPLODED
ORDNANCE, DISCARDED MILITARY MUNITIONS, AND
MUNITIONS CONSTITUENTS.

(a) Inclusion in 2003 Report on Environmental Restoration
Activities.--The Secretary of Defense shall include in the
report submitted to Congress under section 2706(a) of title 10,
United States Code, in 2003 a comprehensive assessment of
unexploded ordnance, discarded military munitions, and
munitions constituents located at current and former facilities
of the Department of Defense. The assessment shall include, at
a minimum, the following:
(1) Separate estimates of the aggregate projected
costs of the remediation of unexploded ordnance,
discarded military munitions, and munitions
constituents at--
(A) all operational ranges; and
(B) all other defense sites.
(2) A comprehensive plan for addressing the
remediation of unexploded ordinance, discarded military
munitions, and munitions constituents at defense sites,
including an assessment of the funding required and the
period of time over which such funding will be
required.
(3) An assessment of the technology currently
available for the remediation of unexploded ordnance,
discarded military munitions, and munitions
constituents.
(4) An assessment of the impact of improved
technology on the cost of such remediation and a plan
for the development and use of such improved
technology.
(b) Requirements for Cost Estimates.--(1) The estimates of
aggregate projected costs required by subsection (a)(1) shall--
(A) be stated as a range of aggregate projected
costs, including a low estimate and a high estimate;
(B) set forth the differing assumptions underlying
each such low estimate and high estimate, including--
(i) any public uses for the operational
ranges and other defense sites concerned that
will be available after the remediation is
completed;
(ii) the extent of the remediation required
to make the operational ranges and other
defense sites concerned available for such
uses; and
(iii) the technologies to be applied to
achieve such level of remediation; and
(C) include, and identify separately, an estimate
of the aggregate projected costs of the remediation of
any ground water contamination that may be caused by
unexploded ordnance, discarded military munitions, or
munitions constituents at the operational ranges and
other defense sites concerned.
(2) The high estimate of the aggregate projected costs
shall be based on the assumption that all unexploded ordnance,
discarded military munitions, and munitions constituents at
each operational range and other defense site will be
addressed, regardless of whether there are any current plans to
close the range or site or discontinue training at the range or
site.
(3) The estimate of the aggregate projected costs of
remediation of ground water contamination under paragraph
(1)(C) shall be based on a comprehensive assessment of the risk
of such contamination and of the actions required to protect
the ground water supplies concerned.
(4) The standards for the report of liabilities of the
Department of Defense shall not apply to the cost estimates
required by subsection (a)(1).
(c) Interim Assessment.--The report submitted to Congress
under section 2706(a) of title 10, United States Code, in 2002
shall include the assessment required by subsection (a) to the
extent that the information required to be provided as part of
the assessment is available. The Secretary shall include an
explanation of any limitations on the information available or
qualifications on the information provided.
(d) Definitions.--In this section, the terms ``unexploded
ordnance'', ``discarded military munitions'', ``munitions
constituents'', ``operational range'', and ``defense site''
have the meanings given such terms in section 2710 of title 10,
United States Code, as added by section 311.

SEC. 314. CONFORMITY OF SURETY AUTHORITY UNDER ENVIRONMENTAL
RESTORATION PROGRAM WITH SURETY AUTHORITY UNDER
CERCLA.

Section 2701(j)(1) of title 10, United States Code, is
amended by striking ``, or after December 31, 1999''.

SEC. 315. ELIMINATION OF ANNUAL REPORT ON CONTRACTOR REIMBURSEMENT FOR
COSTS OF ENVIRONMENTAL RESPONSE ACTIONS.

(a) Report Elimination.--Section 2706 of title 10, United
States Code, is amended--
(1) by striking subsection (c); and
(2) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(b) Conforming Amendments.--Subsection (d) of such section,
as redesignated by subsection (a) of this section, is amended--
(1) by striking paragraphs (1) and (3); and
(2) by redesignating paragraphs (2), (4), and (5)
as paragraphs (1), (2), and (3), respectively.

SEC. 316. PILOT PROGRAM FOR SALE OF AIR POLLUTION EMISSION REDUCTION
INCENTIVES.

(a) Extension.--Section 351(a)(2) of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10
U.S.C. 2701 note) is amended by striking ``September 30, 2001''
and inserting ``September 30, 2003''.
(b) Report Required.--(1) The Secretary of Defense shall
prepare a report concerning the operation of the pilot program
for the sale of economic incentives for the reduction of
emission of air pollutants attributable to military facilities,
as authorized by section 351 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10
U.S.C. 2701 note). The report shall--
(A) detail all transactions that have been
completed under the pilot program, the dollar amount of
each transaction, and the number and type of air
pollutants involved in each transaction;
(B) evaluate the extent to which retention of the
proceeds of sales under the pilot program, as required
by subsection (c) of such section, has provided
incentives for such sales;
(C) evaluate the extent of any loss to the United
States Treasury associated with the pilot program; and
(D) evaluate the environmental impact of the pilot
program.
(2) Not later than March 1, 2003, the Secretary shall
submit the report required by paragraph (1) to the Committee on
Energy and Commerce and the Committee on Armed Services of the
House of Representatives and the Committee on Environment and
Public Works and the Committee on Armed Services of the Senate.

SEC. 317. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.

(a) Sense of Congress.--It is the sense of Congress that
the Secretary of Defense should work to implement fuel
efficiency reforms that allow for investment decisions based on
the true cost of delivered fuel, strengthen the linkage between
warfighting capability and fuel logistics requirements, provide
high-level leadership encouraging fuel efficiency, target fuel
efficiency improvements through science and technology
investment, and include fuel efficiency in requirements and
acquisition processes.
(b) Energy Efficiency Program.--The Secretary shall carry
out a program to significantly improve the energy efficiency of
facilities of the Department of Defense through 2010. The
Secretary shall designate a senior official of the Department
of Defense to be responsible for managing the program for the
Department and a senior official of each military department to
be responsible for managing the program for such department.
(c) Energy Efficiency Goals.--The goal of the energy
efficiency program shall be to achieve reductions in energy
consumption by facilities of the Department of Defense as
follows:
(1) In the case of industrial and laboratory
facilities, reductions in the average energy
consumption per square foot of such facilities, per
unit of production or other applicable unit, relative
to energy consumption in 1990--
(A) by 20 percent by 2005; and
(B) by 25 percent by 2010.
(2) In the case of other facilities, reductions in
average energy consumption per gross square foot of
such facilities, relative to energy consumption per
gross square foot in 1985--
(A) by 30 percent by 2005; and
(B) by 35 percent by 2010.
(d) Strategies for Improving Energy Efficiency.--In order
to achieve the goals set forth in subsection (c), the Secretary
shall, to the maximum extent practicable--
(1) purchase energy-efficient products, as so
designated by the Environmental Protection Agency and
the Department of Energy, and other products that are
energy-efficient;
(2) utilize energy savings performance contracts,
utility energy-efficiency service contracts, and other
contracts designed to achieve energy conservation;
(3) use life-cycle cost analysis, including
assessment of life-cycle energy costs, in making
decisions about investments in products, services,
construction, and other projects;
(4) conduct energy efficiency audits for
approximately 10 percent of all Department of Defense
facilities each year;
(5) explore opportunities for energy efficiency in
industrial facilities for steam systems, boiler
operation, air compressor systems, industrial
processes, and fuel switching; and
(6) retire inefficient equipment on an accelerated
basis where replacement results in lower life-cycle
costs.
(e) Reporting Requirements.--Not later than January 1,
2002, and each January 1 thereafter through 2010, the Secretary
shall submit to the congressional defense committees the report
required to be prepared by the Secretary pursuant to section
303 of Executive Order 13123 (64 Fed. Reg. 30851; 42 U.S.C.
8251 note) regarding the progress made toward achieving the
energy efficiency goals of the Department of Defense.

SEC. 318. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT DUTY
TRUCKS.

(a) Defense Fleets Not Covered by Requirement in Energy
Policy Act of 1992.--(1) The Secretary of Defense shall
coordinate with the Administrator of General Services to ensure
that only hybrid vehicles are procured by the Administrator for
the Department of Defense fleet of light duty trucks that is
not in a fleet of vehicles to which section 303 of the Energy
Policy Act of 1992 (42 U.S.C. 13212) applies.
(2) The Secretary, in consultation with the Administrator,
may waive the policy regarding the procurement of hybrid
vehicles in paragraph (1) to the extent that the Secretary
determines necessary--
(A) in the case of trucks that are exempt from the
requirements of section 303 of the Energy Policy Act of
1992 for national security reasons under subsection
(b)(3)(E) of such section, to meet specific
requirements of the Department of Defense for
capabilities of light duty trucks;
(B) to procure vehicles consistent with the
standards applicable to the procurement of fleet
vehicles for the Federal Government; or
(C) to adjust to limitations on the commercial
availability of light duty trucks that are hybrid
vehicles.
(3) This subsection applies with respect to procurements of
light duty trucks in fiscal year 2005 and subsequent fiscal
years.
(b) Requirement To Exceed Requirement in Energy Policy Act
of 1992.--(1) The Secretary of Defense shall coordinate with
the Administrator of General Services to ensure that, of the
light duty trucks procured in fiscal years after fiscal year
2004 for the fleets of light duty vehicles of the Department of
Defense to which section 303 of the Energy Policy Act of 1992
applies--
(A) five percent of the total number of such trucks
that are procured in each of fiscal years 2005 and 2006
are alternative fueled vehicles or hybrid vehicles; and
(B) ten percent of the total number of such trucks
that are procured in each fiscal year after fiscal year
2006 are alternative fueled vehicles or hybrid
vehicles.
(2) Light duty trucks acquired for the Department of
Defense that are counted to comply with section 303 of the
Energy Policy Act of 1992 for a fiscal year shall be counted to
determine the total number of light duty trucks procured for
the Department of Defense for that fiscal year for the purposes
of paragraph (1), but shall not be counted to satisfy the
requirement in that paragraph.
(c) Report on Plans for Implementation.--At the same time
that the President submits the budget for fiscal year 2003 to
Congress under section 1105(a) of title 31, United States Code,
the Secretary shall submit to Congress a report summarizing the
plans for carrying out subsections (a) and (b).
(d) Definitions.--In this section:
(1) The term ``hybrid vehicle'' means a motor
vehicle that draws propulsion energy from onboard
sources of stored energy that are both--
(A) an internal combustion or heat engine
using combustible fuel; and
(B) a rechargeable energy storage system.
(2) The term ``alternative fueled vehicle'' has the
meaning given that term in section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211).

SEC. 319. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN
RESPONSE COSTS IN CONNECTION WITH HOOPER SANDS
SITE, SOUTH BERWICK, MAINE.

(a) Authority To Reimburse.--Using amounts specified in
subsection (c), the Secretary of the Navy may pay $1,005,478 to
the Hooper Sands Special Account within the Hazardous Substance
Superfund established by section 9507 of the Internal Revenue
Code of 1986 to reimburse the Environmental Protection Agency
for the response costs incurred by the Environmental Protection
Agency for actions taken between May 12, 1992, and July 31,
2000, pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.) at the Hooper Sands site in South Berwick, Maine, in
accordance with the interagency agreement entered into by the
Department of the Navy and the Environmental Protection Agency
in January 2001.
(b) Treatment of Reimbursement.--Payment of the amount
authorized by subsection (a) shall be in full satisfaction of
amounts due from the Department of the Navy to the
Environmental Protection Agency for the response costs
described in that subsection.
(c) Source of Funds.--Payment under subsection (a) shall be
made using amounts authorized to be appropriated by section
301(a)(15) to the Environmental Restoration Account, Navy,
established by section 2703(a)(3) of title 10, United States
Code.

SEC. 320. RIVER MITIGATION STUDIES.

(a) Port of Orange, Sabine River.--The Secretary of Defense
may conduct a study regarding protruding structures and
submerged objects remaining from the World War II Navy ship
building industry located at the former Navy installation in
Orange, Texas, which create navigational hazards along the
Sabine River and surrounding the Port of Orange.
(b) Philadelphia Naval Shipyard, Delaware River.--The
Secretary of Defense may conduct a study regarding floating and
partially submerged debris possibly relating to the
Philadelphia Naval Shipyard in that portion of the Delaware
River from Philadelphia, Pennsylvania, to the mouth of the
river which create navigational hazards along the river.
(c) Use of Existing Information.--In conducting a study
authorized by this section, the Secretary of Defense shall take
into account any information available from other studies
conducted in connection with the same navigation channels.
(d) Consultation.--The Secretary of Defense shall conduct
the studies authorized by this section in consultation with
appropriate State and local government entities and Federal
agencies.
(e) Report on Study Results.--Not later than April 30,
2002, the Secretary of Defense shall submit to the Committee on
Armed Services of the House of Representatives and the
Committee on Armed Services of the Senate a report that--
(1) summarizes the results of each study conducted
under this section; and
(2) contains an evaluation by the Secretary of the
extent to which the navigational hazards identified in
each study are the result of Department of Defense
activities.
(f) Cost Sharing.--Nothing in this section is intended to
require non-Federal cost sharing of the costs incurred by the
Secretary of Defense to conduct a study authorized by this
section.
(g) Relation to Other Laws and Agreements.--This section is
not intended to modify any authorities provided to the
Secretary of the Army by the Water Resources Development Act of
1986 (33 U.S.C. 2201 et seq.), nor is it intended to modify any
non-Federal cost-sharing responsibilities outlined in any local
cooperation agreements.

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. COMMISSARY BENEFITS FOR NEW MEMBERS OF THE READY RESERVE.

(a) Eligibility.--Section 1063 of title 10, United States
Code, is amended--
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(2) by inserting after subsection (a) the following
new subsection (b):
``(b) Eligibility of New Members.--(1) The Secretary
concerned shall authorize a new member of the Ready Reserve to
use commissary stores of the Department of Defense for a number
of days accruing at the rate of two days for each month in
which the member participates satisfactorily in training
required under section 10147(a)(1) of this title or section
502(a) of title 32, as the case may be.
``(2) For the purposes of paragraph (1), a person shall be
considered a new member of the Ready Reserve upon becoming a
member and continuing without a break in the membership until
the earlier of--
``(A) the date on which the member becomes eligible
to use commissary stores under subsection (a); or
``(B) December 31 of the first calendar year in
which the membership has been continuous for the entire
year.
``(3) A new member may not be authorized under this
subsection to use commissary stores for more than 24 days for
any calendar year.''.
(b) Required Documentation.--Subsection (d) of such
section, as redesignated by subsection (a)(1), is amended by
adding at the end the following new sentence: ``The regulations
shall specify the required documentation of satisfactory
participation in training for the purposes of subsection
(b).''.
(c) Conforming Amendment.--Subsection (c) of such section,
as redesignated by subsection (a)(1), is amended by striking
``Subsection (a)'' and inserting ``Subsections (a) and (b)''.
(d) Clerical Amendments.--(1) The heading for such section
is amended to read as follows:

``Sec. 1063. Use of commissary stores: members of Ready Reserve''.

(2) Subsection (a) of such section is amended by striking
``of Ready Reserve'' and inserting ``With 50 or More Creditable
Points''.
(3) The item relating to such section in the table of
sections at the beginning of chapter 54 of title 10, United
States Code, is amended to read as follows:

``1063. Use of commissary stores: members of Ready Reserve.''.

SEC. 332. REIMBURSEMENT FOR USE OF COMMISSARY FACILITIES BY MILITARY
DEPARTMENTS FOR PURPOSES OTHER THAN COMMISSARY
SALES.

(a) Requirement.--Chapter 147 of title 10, United States
Code, is amended by inserting after section 2482a the following
new section:

``Sec. 2483. Commissary stores: reimbursement for use of commissary
facilities by military departments

``(a) Payment Required.--The Secretary of a military
department shall pay the Defense Commissary Agency the amount
determined under subsection (b) for any use of a commissary
facility by the military department for a purpose other than
commissary sales or operations in support of commissary sales.
``(b) Amount.--The amount payable under subsection (a) for
use of a commissary facility by a military department shall be
equal to the share of depreciation of the facility that is
attributable to that use, as determined under regulations
prescribed by the Secretary of Defense.
``(c) Covered Facilities.--This section applies with
respect to a commissary facility that is acquired, constructed,
converted, expanded, installed, or otherwise improved (in whole
or in part) with the proceeds of an adjustment or surcharge
applied under section 2486(c) of this title.
``(d) Crediting of Payments.--The Director of the Defense
Commissary Agency shall credit amounts paid under this section
for use of a facility to an appropriate account to which
proceeds of an adjustment or surcharge referred to in
subsection (c) are credited.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2482a the following new item:

``2483. Commissary stores: reimbursement for use of commissary
facilities by military departments.''.

SEC. 333. PUBLIC RELEASES OF COMMERCIALLY VALUABLE INFORMATION OF
COMMISSARY STORES.

(a) Limitations and Authority.--Section 2487 of title 10,
United States Code, is amended to read as follows:

``Sec. 2487. Commissary stores: release of certain commercially
valuable information to the public

``(a) Authority To Limit Release.--(1) The Secretary of
Defense may limit the release to the public of any information
described in paragraph (2) if the Secretary determines that it
is in the best interest of the Department of Defense to limit
the release of such information. If the Secretary determines to
limit the release of any such information, the Secretary may
provide for limited release of such information in accordance
with subsection (b).
``(2) Paragraph (1) applies to the following:
``(A) Information contained in the computerized
business systems of commissary stores or the Defense
Commissary Agency that is collected through or in
connection with the use of electronic scanners in
commissary stores, including the following information:
``(i) Data relating to sales of goods or
services.
``(ii) Demographic information on
customers.
``(iii) Any other information pertaining to
commissary transactions and operations.
``(B) Business programs, systems, and applications
(including software) relating to commissary operations
that were developed with funding derived from
commissary surcharges.
``(b) Release Authority.--(1) The Secretary of Defense may,
using competitive procedures, enter into a contract to sell
information described in subsection (a)(2).
``(2) The Secretary of Defense may release, without charge,
information on an item sold in commissary stores to the
manufacturer or producer of that item or an agent of the
manufacturer or producer.
``(3) The Secretary of Defense may, by contract entered
into with a business, grant to the business a license to use
business programs referred to in subsection (a)(2)(B),
including software used in or comprising any such program. The
fee charged for the license shall be based on the costs of
similar programs developed and marketed by businesses in the
private sector, determined by means of surveys.
``(4) Each contract entered into under this subsection
shall specify the amount to be paid for information released or
a license granted under the contract, as the case may be.
``(c) Form of Release.--Information described in subsection
(a)(2) may not be released, under subsection (b) or otherwise,
in a form that identifies any customer or that provides
information making it possible to identify any customer.
``(d) Receipts.--Amounts received by the Secretary under
this section shall be credited to funds derived from commissary
surcharges, shall be merged with those funds, and shall be
available for the same purposes as the funds with which merged.
``(e) Definition.--In this section, the term `commissary
surcharge' means any adjustment or surcharge applied under
section 2486(c) of this title.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 147 of title 10, United States Code, is
amended by striking the item relating to section 2487 and
inserting the following new item:

``2487. Commissary stores: release of certain commercially valuable
information to the public.''.

SEC. 334. REBATE AGREEMENTS WITH PRODUCERS OF FOODS PROVIDED UNDER
SPECIAL SUPPLEMENTAL FOOD PROGRAM.

Section 1060a of title 10, United States Code, is amended--
(1) by redesignating subsections (e) and (f) as
subsections (f) and (g), respectively; and
(2) by inserting after subsection (d) the following
new subsection:
``(e) Rebate Agreements With Food Producers.--(1) In the
administration of the program under this section, the Secretary
of Defense may enter into a contract with a producer of a
particular brand of food that provides for--
``(A) the Secretary of Defense to procure that
particular brand of food, exclusive of other brands of
the same or similar food, for the purpose of providing
the food in commissary stores of the Department of
Defense as a supplemental food under the program; and
``(B) the producer to rebate to the Secretary
amounts equal to agreed portions of the amounts paid by
the Secretary for the procurement of that particular
brand of food for the program.
``(2) The Secretary of Defense shall use competitive
procedures under chapter 137 of this title to enter into
contracts under this subsection.
``(3) The period covered by a contract entered into under
this subsection may not exceed one year. No such contract may
be extended by a modification of the contract, by exercise of
an option, or by any other means. Nothing in this paragraph
prohibits a contractor under a contract entered into under this
subsection for any year from submitting an offer for, and being
awarded, a contract that is to be entered into under this
subsection for a successive year.
``(4) Amounts rebated under a contract entered into under
paragraph (1) shall be credited to the appropriation available
for carrying out the program under this section in the fiscal
year in which rebated, shall be merged with the other sums in
that appropriation, and shall be available for the program for
the same period as the other sums in the appropriation.''.

SEC. 335. CIVIL RECOVERY FOR NONAPPROPRIATED FUND INSTRUMENTALITY COSTS
RELATED TO SHOPLIFTING.

Section 3701(b)(1)(B) of title 31, United States Code, is
amended by inserting before the comma at the end the following:
``, including actual and administrative costs related to
shoplifting, theft detection, and theft prevention''.

Subtitle D--Workforce and Depot Issues

SEC. 341. REVISION OF AUTHORITY TO WAIVE LIMITATION ON PERFORMANCE OF
DEPOT-LEVEL MAINTENANCE.

Section 2466 of title 10, United States Code, is amended--
(1) by striking subsection (c); and
(2) by inserting after subsection (a) the following
new subsections:
``(b) Waiver of Limitation.--The Secretary of Defense may
waive the limitation in subsection (a) for a fiscal year if--
``(1) the Secretary determines that the waiver is
necessary for reasons of national security; and
``(2) the Secretary submits to Congress a
notification of the waiver together with the reasons
for the waiver.
``(c) Prohibition on Delegation of Waiver Authority.--The
authority to grant a waiver under subsection (b) may not be
delegated.''.

SEC. 342. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON PRIVATE
SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

Section 2474 of title 10, United States Code, is amended--
(1) by redesignating subsection (f) as subsection
(g); and
(2) by inserting after subsection (e) the following
new subsection (f):
``(f) Exclusion of Certain Expenditures From Percentage
Limitation.--(1) Amounts expended out of funds described in
paragraph (2) for the performance of a depot-level maintenance
and repair workload by non-Federal Government personnel at a
Center of Industrial and Technical Excellence shall not be
counted for purposes of applying the percentage limitation in
section 2466(a) of this title if the personnel are provided by
private industry or other entities outside the Department of
Defense pursuant to a public-private partnership.
``(2) The funds referred to in paragraph (1) are funds
available to the military departments and Defense Agencies for
depot-level maintenance and repair workloads for fiscal years
2002 through 2005.
``(3) All funds covered by paragraph (1) shall be included
as a separate item in the reports required under paragraphs
(1), (2), and (3) of section 2466(e) of this title.''.

SEC. 343. PROTECTIONS FOR PURCHASERS OF ARTICLES AND SERVICES
MANUFACTURED OR PERFORMED BY WORKING-CAPITAL FUNDED
INDUSTRIAL FACILITIES OF THE DEPARTMENT OF DEFENSE.

(a) General Rule.--Section 2563(c) of title 10, United
States Code, is amended--
(1) in paragraph (1)(B), by striking ``in any case
of willful misconduct or gross negligence'' and
inserting ``as provided in paragraph (3)''; and
(2) by adding at the end the following new
paragraph:
``(3) Paragraph (1)(B) does not apply in any case of
willful misconduct or gross negligence or in the case of a
claim by a purchaser of articles or services under this section
that damages or injury arose from the failure of the Government
to comply with quality, schedule, or cost performance
requirements in the contract to provide the articles or
services.''.
(b) Conforming Amendment.--Section 2474(e)(2)(B)(i) of such
title is amended by striking ``in a case of willful conduct or
gross negligence'' and inserting ``under the circumstances
described in section 2563(c)(3) of this title''.

SEC. 344. REVISION OF DEADLINE FOR ANNUAL REPORT ON COMMERCIAL AND
INDUSTRIAL ACTIVITIES.

Section 2461(g) of title 10, United States Code, is amended
by striking ``February 1'' and inserting ``June 30''.

SEC. 345. PILOT MANPOWER REPORTING SYSTEM IN DEPARTMENT OF THE ARMY.

(a) Annual Reporting Requirement.--Not later than March 1
of each of the fiscal years 2002 through 2004, the Secretary of
the Army shall submit to Congress a report describing the use
during the previous fiscal year of non-Federal entities to
provide services to the Department of the Army.
(b) Content of Report.--Using information available from
existing data collection and reporting systems available to the
Department of the Army and the non-Federal entities referred to
in subsection (a), the report shall--
(1) specify the number of work year equivalents
performed by individuals employed by non-Federal
entities in providing services to the Department;
(2) categorize the information by Federal supply
class or service code; and
(3) indicate the appropriation from which the
services were funded and the major organizational
element of the Department procuring the services.
(c) Limitation on Requirement for Non-Federal Entities to
Provide Information.--For the purposes of meeting the
requirements set forth in subsection (b), the Secretary of the
Army may not require the provision of information beyond the
information that is currently provided to the Department of the
Army by the non-Federal entities referred to in subsection (a),
except for the number of work year equivalents associated with
Department of the Army contracts, identified by contract
number, to the extent this information is available to the
contractor from existing data collection systems.
(d) Repeal of Obsolete Reporting Requirement.--Section 343
of the National Defense Authorization Act for Fiscal Year 2000
(Public Law 106-65; 113 Stat. 569) is repealed.

SEC. 346. DEVELOPMENT OF ARMY WORKLOAD AND PERFORMANCE SYSTEM AND
WHOLESALE LOGISTICS MODERNIZATION PROGRAM.

(a) Relationship Between Systems.--(1) The Army Workload
and Performance System, including all applications in the
master plan submitted to Congress on June 8, 2001, and any
revisions to the master plan, shall be developed in such a
manner that its functionality and identity are in compliance
with all statutory requirements. The Army Workload and
Performance System shall continue as a standard Army-wide
manpower system under the supervision and management of the
Secretary of the Army.
(2) The requirement in paragraph (1) is intended to
encourage the sharing of data between the Army Workload and
Performance System and the Wholesale Logistics Modernization
Program and the development of the processes necessary to
permit or enhance such data sharing.
(b) Annual Progress Reports.--(1) Not later than February 1
of each year, the Secretary of the Army shall submit to
Congress a progress report on the implementation of the master
plan for the Army Workload and Performance System during the
preceding year. The report shall specifically address any
changes made to the master plan since the previous report.
(2) The reporting requirement shall terminate when the
Secretary certifies to Congress that the Army Workload and
Performance System is fully implemented.
(c) GAO Evaluation.--Not later than 60 days after the
Secretary of the Army submits to Congress a progress report
under subsection (b), the Comptroller General shall submit to
Congress an evaluation of the report.
(d) Army Workload and Performance System Defined.--The term
``Army Workload and Performance System'' includes all
applications in the master plan for the System submitted to
Congress on June 8, 2001, and any revision of such master plan.

Subtitle E--Defense Dependents Education

SEC. 351. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT
DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND
DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

(a) Continuation of Department of Defense Program for
Fiscal Year 2002.--Of the amount authorized to be appropriated
pursuant to section 301(a)(5) for operation and maintenance for
Defense-wide activities--
(1) $30,000,000 shall be available only for the
purpose of providing educational agencies assistance to
local educational agencies; and
(2) $1,000,000 shall be available only for the
purpose of making payments to local educational
agencies to assist such agencies in adjusting to
reductions in the number of military dependent students
as a result of the closure or realignment of military
installations, as provided in section 386(d) of the
National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484; 20 U.S.C. 7703 note).
(b) Notification.--Not later than June 30, 2002, the
Secretary of Defense shall notify each local educational agency
that is eligible for assistance or a payment under subsection
(a) for fiscal year 2002 of--
(1) that agency's eligibility for the assistance or
payment; and
(2) the amount of the assistance or payment for
which that agency is eligible.
(c) Disbursement of Funds.--The Secretary of Defense shall
disburse funds made available under subsection (a) not later
than 30 days after the date on which notification to the
eligible local educational agencies is provided pursuant to
subsection (b).
(d) Definitions.--In this section:
(1) The term ``educational agencies assistance''
means assistance authorized under section 386(b) of the
National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484; 20 U.S.C. 7703 note).
(2) The term ``local educational agency'' has the
meaning given that term in section 8013(9) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7713(9)).

SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

Of the amount authorized to be appropriated pursuant to
section 301(a)(5) for operation and maintenance for Defense-
wide activities, $5,000,000 shall be available for payments
under section 363 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-77; 20 U.S.C. 7703a).

SEC. 353. AVAILABILITY OF AUXILIARY SERVICES OF DEFENSE DEPENDENTS'
EDUCATION SYSTEM FOR DEPENDENTS WHO ARE HOME SCHOOL
STUDENTS.

Section 1407 of the Defense Dependents' Education Act of
1978 (20 U.S.C. 926) is amended--
(1) by redesignating subsection (d) as subsection
(e); and
(2) by inserting after subsection (c) the following
new subsection:
``(d) Auxiliary Services Available to Home School
Students.--(1) A dependent who is educated in a home school
setting, but who is eligible to enroll in a school of the
defense dependents' education system, shall be permitted to use
or receive auxiliary services of that school without being
required to either enroll in that school or register for a
minimum number of courses offered by that school. The dependent
may be required to satisfy other eligibility requirements and
comply with standards of conduct applicable to students
actually enrolled in that school who use or receive the same
auxiliary services.
``(2) For purposes of paragraph (1), the term `auxiliary
services' includes use of academic resources, access to the
library of the school, after hours use of school facilities,
and participation in music, sports, and other extracurricular
and interscholastic activities.''.

SEC. 354. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION
PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE
OVERSEAS DEPENDENTS' SCHOOLS.

(a) GAO Study Required.--The Comptroller General shall
carry out a study of the adequacy of the pay and other elements
of the compensation provided for teachers in the defense
dependents' education system established under the Defense
Dependents' Education Act of 1978 (20 U.S.C. 921 et seq.).
(b) Specific Considerations.--In carrying out the study,
the Comptroller General shall consider the following issues:
(1) Whether the compensation is adequate for
recruiting and retaining high quality teachers.
(2) Whether any revision of the Defense Department
Overseas Teachers Pay and Personnel Practices Act (20
U.S.C. 901 et seq.) or the regulations under that Act
is advisable to address any problems identified with
respect to the recruitment and retention of high
quality teachers or for other purposes.
(c) Report.--Not later than May 1, 2002, the Comptroller
General shall submit to Congress a report containing the
results of the study, including--
(1) the Comptroller General's conclusions on the
issues considered; and
(2) any recommendations for actions that the
Comptroller General considers appropriate.

Subtitle F--Other Matters

SEC. 361. AVAILABILITY OF EXCESS DEFENSE PERSONAL PROPERTY TO SUPPORT
DEPARTMENT OF VETERANS AFFAIRS INITIATIVE TO ASSIST
HOMELESS VETERANS.

(a) Transfer Authority.--Subsection (a) of section 2557 of
title 10, United States Code, is amended--
(1) by striking ``The Secretary'' and inserting
``(1) The Secretary''; and
(2) by adding at the end the following new
paragraph:
``(2) The Secretary of Defense may make excess clothing,
shoes, sleeping bags, and related nonlethal excess supplies
available to the Secretary of Veterans Affairs for distribution
to homeless veterans and programs assisting homeless veterans.
The transfer of nonlethal excess supplies to the Secretary of
Veterans Affairs under this paragraph shall be without
reimbursement.''.
(b) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 2557. Excess nonlethal supplies: availability for homeless
veteran initiatives and humanitarian relief''.

(2) The table of sections at the beginning of chapter 152
of such title is amended by striking the item relating to
section 2557 and inserting the following new item:

``2557. Excess nonlethal supplies: availability for homeless veteran
initiatives and humanitarian relief.''.

SEC. 362. INCREMENTAL IMPLEMENTATION OF NAVY-MARINE CORPS INTRANET
CONTRACT.

(a) Additional Phase-In Authority.--Section 814 of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat.
1654A-215) is amended--
(1) by redesignating subsections (c), (d), (e), and
(f) as subsections (f), (g), (h), and (i),
respectively; and
(2) by inserting after subsection (b) the following
new subsections:
``(c) Additional Phase-In Authority Pending Second Joint
Certification.--(1)(A) Notwithstanding subsection (b)(3), the
Secretary of the Navy may order additional work stations under
the Navy-Marine Corps Intranet contract in excess of the number
provided in the first increment of the contract under
subsection (b)(2), but not to exceed an additional 100,000 work
stations. The authority of Secretary of the Navy to order
additional work stations under this paragraph is subject to
approval by both the Under Secretary of Defense for
Acquisition, Technology, and Logistics and the Chief
Information Officer of the Department of Defense.
``(B) The Under Secretary of Defense for Acquisition,
Technology, and Logistics and the Chief Information Officer of
the Department of Defense may not grant approval to the
Secretary of the Navy to order additional work stations under
subparagraph (A) until a three-phase customer test and
evaluation, observed by the Department of Defense, is completed
for a statistically significant representative sample of the
work stations operating on the Navy-Marine Corps Intranet. The
test and evaluation shall include end user testing of day-to-
day operations (including e-mail capability and performance),
scenario-driven events, and scenario-based interoperability
testing.
``(2)(A) Notwithstanding subsection (b)(3), the Secretary
of the Navy may order additional work stations under the Navy-
Marine Corps Intranet contract in excess of the number provided
in the first increment of the contract under subsection (b)(2)
and the number ordered under the authority of paragraph (1),
but not to exceed an additional 150,000 work stations. The
authority of Secretary of the Navy to order additional work
stations under this paragraph is also subject to approval by
both the Under Secretary of Defense for Acquisition,
Technology, and Logistics and the Chief Information Officer of
the Department of Defense.
``(B) The Under Secretary of Defense for Acquisition,
Technology, and Logistics and the Chief Information Officer of
the Department of Defense may not grant approval to the
Secretary of the Navy to order additional work stations under
subparagraph (A) until each of the following occurs:
``(i) There has been a full transition of not less
than 20,000 work stations to the Navy-Marine Corps
Intranet.
``(ii) The work stations referred to in clause (i)
have met applicable service-level agreements specified
in the Navy-Marine Corps Intranet contract, as
determined by contractor performance measurement under
oversight by the Department of the Navy.
``(iii) The Chief Information Officer of the Navy
certifies to the Secretary of the Navy and the Chief
Information Officer of the Department of Defense that
the results of the performance evaluation referred to
in clause (ii) are acceptable.
``(3) Of the work stations ordered under the authority
provided by paragraph (2), not more than 50 percent may reach
the major milestone known as `assumption of responsibility'
until each of the following occurs:
``(A) All work stations for the headquarters of the
Naval Air Command have met applicable service-level
agreements specified in the Navy-Marine Corps Intranet
contract, as determined by contractor performance
measurement under oversight by the Department of the
Navy.
``(B) The Chief Information Officer of the Navy
certifies to the Secretary of the Navy and the Chief
Information Officer of the Department of Defense that
the results of the performance evaluation referred to
in subparagraph (B) are acceptable.
``(4) For the purposes of this section, when the
information infrastructure and systems of a user of a work
station are transferred into Navy-Marine Corps Intranet
infrastructure and systems under the Navy-Marine Corps Intranet
contract consistent with the applicable service-level
agreements specified in the Navy-Marine Corps Intranet
contract, the work station shall be considered as having been
provided for the Navy-Marine Corps Intranet.
``(d) Reporting and Review Requirements.--(1) If work
stations are ordered using the authority provided by paragraph
(1) or (2) of subsection (c), the Secretary of the Navy shall
submit to Congress a report, current as of the date the
determination is made to order the work stations, on the
following:
``(A) The number of work stations operating on the
Navy-Marine Corps Intranet, including the number of
work stations regarding which assumption of
responsibility has occurred.
``(B) The status of testing and implementation of
the Navy-Marine Corps Intranet program.
``(C) The number of work stations to be ordered
under paragraph (1) or (2) of subsection (c), whichever
applies.
``(2) A report containing the information required by
paragraph (1) shall also be submitted to Congress when the
requirements of paragraph (3) of subsection (c) are satisfied
and additional work stations under the Navy-Marine Corps
Intranet contract are authorized to reach assumption of
responsibility.
``(3) The Comptroller General shall conduct a review of the
impact that participation in the Navy-Marine Corps Intranet
program has on information technology costs of working capital
funded industrial facilities of the Department of the Navy and
submit the results of the review to Congress.''.
(b) Navy-Marine Corps Intranet Manager.--Such section is
further amended by inserting after subsection (d), as added by
subsection (a)(2) of this section, the following new
subsection:
``(e) Assignment of Navy-Marine Corps Intranet Manager.--
The Secretary of the Navy shall assign an employee of the
Department of the Navy to the Navy-Marine Corps Intranet
program whose sole responsibility will be to oversee and direct
the program. The employee so assigned may not also be the
program executive officer.''.
(c) Definitions.--Subsection (i) of such section, as
redesignated by subsection (a)(1) of this section, is amended--
(1) by striking ``Navy-Marine Corps Intranet
Contract Defined.--'' and inserting ``Definitions.--
(1)''; and
(2) by adding at the end the following new
paragraph:
``(2) In this section, the term `assumption of
responsibility', with respect to a work station, means
the point at which the contractor team under the Navy-
Marine Corps Intranet contract assumes operational
control of, and responsibility for, the existing
information infrastructure and systems of a work
station, in order to prepare for ultimate transition of
the work station to the Navy-Marine Corps Intranet.''.

SEC. 363. COMPTROLLER GENERAL STUDY AND REPORT OF NATIONAL GUARD
DISTRIBUTIVE TRAINING TECHNOLOGY PROJECT.

(a) Study Required.--The Comptroller General of the United
States shall conduct a study of the Distributive Training
Technology Project of the National Guard. The study shall
examine--
(1) current requirements of the National Guard for
interconnection of networks of the Distributive
Training Technology Project with other networks,
including networks of the Federal Emergency Management
Agency and other Federal, State, and local emergency
preparedness and response agencies; and
(2) future requirements of the National Guard for
interconnection of networks of the Project with other
networks, including those Federal and State agencies
having disaster response functions.
(b) Elements of Study.--For both the current requirements
identified under subsection (a)(1) and future requirements
identified under subsection (a)(2), the study shall examine the
following:
(1) Appropriate connections between the Project and
other networks.
(2) Means of protecting the Project from outside
intrusion.
(3) Impediments to interconnectivity, including the
extent to which national security concerns affect
interconnectivity and the technological capability of
the Department of Defense to impede interconnectivity,
as well as other concerns or limitations that affect
interconnectivity.
(4) Means of improving interconnectivity.
(c) Report.--Not later than 270 days after the date of the
enactment of this Act, the Comptroller General shall submit to
the Committee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives a report on
the study conducted under subsection (a). The report shall
describe the results of the study and shall include any
recommendations that the Comptroller General considers
appropriate in light of the study.

SEC. 364. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

(a) Extension of Authority.--Subsection (f) of section 391
of the National Defense Authorization Act for Fiscal Year 1998
(Public Law 105-85; 10 U.S.C. 2304 note) is amended by striking
``September 30, 2000'' and inserting ``September 30, 2003''.
(b) Reporting Requirements.--Subsection (g) of such section
is amended--
(1) in paragraph (1), by striking ``January 1,
2001'' and inserting ``January 1, 2003''; and
(2) in paragraph (2), by striking ``March 1, 2001''
and inserting ``March 1, 2003''.

SEC. 365. EVALUATION OF CURRENT DEMONSTRATION PROGRAMS TO IMPROVE
QUALITY OF PERSONAL PROPERTY SHIPMENTS OF MEMBERS.

(a) Completion of Evaluation; Report.--Not later than March
31, 2002, the Secretary of Defense shall complete the ongoing
evaluation of all test programs regarding the transportation of
household goods for members of the Armed Forces and submit to
Congress a report containing the results of such evaluation.
(b) Contents of Report.--The report shall include--
(1) the results of each test program evaluated,
including whether the test program satisfied the goals
for the movement of such household goods (as contained
in the General Accounting Report NSIAD 97-49) and
whether current business processes and information
technology capabilities require upgrading or other
changes to improve the transportation of such household
goods; and
(2) recommendations for policy improvements for
military household moves worldwide, including an
estimate of the cost to implement each recommendation.

SEC. 366. SENSE OF CONGRESS REGARDING SECURITY TO BE PROVIDED AT 2002
WINTER OLYMPIC GAMES.

It is the sense of Congress that the Secretary of Defense,
upon receipt of the certification of the Attorney General
required by section 2564(a) of title 10, United States Code,
should authorize the provision of assistance in support of
essential security and safety at the 2002 Winter Olympic Games
to be held in Salt Lake City, Utah, and other locations in the
State of Utah.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Subtitle B--Reserve Forces

Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Administration of end strengths.
Sec. 422. Active duty end strength exemption for National Guard and
reserve personnel performing funeral honors functions.

Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

The Armed Forces are authorized strengths for active duty
personnel as of September 30, 2002, as follows:
(1) The Army, 480,000.
(2) The Navy, 376,000.
(3) The Marine Corps, 172,600.
(4) The Air Force, 358,800.

SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

Section 691(b) of title 10, United States Code, is
amended--
(1) in paragraph (2), by striking ``372,000'' and
inserting ``376,000''; and
(2) in paragraph (4), by striking ``357,000'' and
inserting ``358,800''.

SEC. 403. INCREASE IN SENIOR ENLISTED ACTIVE DUTY GRADE LIMIT FOR NAVY,
MARINE CORPS, AND AIR FORCE.

Section 517(a) of title 10, United States Code, is amended
by striking ``2 percent (or, in the case of the Army, 2.5
percent)'' and inserting ``2.5 percent''.

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) In General.--The Armed Forces are authorized strengths
for Selected Reserve personnel of the reserve components as of
September 30, 2002, as follows:
(1) The Army National Guard of the United States,
350,000.
(2) The Army Reserve, 205,000.
(3) The Naval Reserve, 87,000.
(4) The Marine Corps Reserve, 39,558.
(5) The Air National Guard of the United States,
108,400.
(6) The Air Force Reserve, 74,700.
(7) The Coast Guard Reserve, 8,000.
(b) Adjustments.--The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve
component shall be proportionately reduced by--
(1) the total authorized strength of units
organized to serve as units of the Selected Reserve of
such component which are on active duty (other than for
training) at the end of the fiscal year; and
(2) the total number of individual members not in
units organized to serve as units of the Selected
Reserve of such component who are on active duty (other
than for training or for unsatisfactory participation
in training) without their consent at the end of the
fiscal year.
Whenever such units or such individual members are released
from active duty during any fiscal year, the end strength
prescribed for such fiscal year for the Selected Reserve of
such reserve component shall be proportionately increased by
the total authorized strengths of such units and by the total
number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE
RESERVES.

Within the end strengths prescribed in section 411(a), the
reserve components of the Armed Forces are authorized, as of
September 30, 2002, the following number of Reserves to be
serving on full-time active duty or full-time duty, in the case
of members of the National Guard, for the purpose of
organizing, administering, recruiting, instructing, or training
the reserve components:
(1) The Army National Guard of the United States,
23,698.
(2) The Army Reserve, 13,406.
(3) The Naval Reserve, 14,811.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United States,
11,591.
(6) The Air Force Reserve, 1,437.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

The minimum number of military technicians (dual status) as
of the last day of fiscal year 2002 for the reserve components
of the Army and the Air Force (notwithstanding section 129 of
title 10, United States Code) shall be the following:
(1) For the Army Reserve, 6,249.
(2) For the Army National Guard of the United
States, 23,615.
(3) For the Air Force Reserve, 9,818.
(4) For the Air National Guard of the United
States, 22,422.

SEC. 414. FISCAL YEAR 2002 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

(a) Limitation.--The number of non-dual status technicians
employed by the reserve components of the Army and the Air
Force as of September 30, 2002, may not exceed the following:
(1) For the Army Reserve, 1,095.
(2) For the Army National Guard of the United
States, 1,600.
(3) For the Air Force Reserve, 90.
(4) For the Air National Guard of the United
States, 350.
(b) Non-Dual Status Technicians Defined.--In this section,
the term ``non-dual status technician'' has the meaning given
that term in section 10217(a) of title 10, United States Code.

SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PERSONNEL SERVING ON ACTIVE
DUTY OR FULL-TIME NATIONAL GUARD DUTY IN CERTAIN
GRADES FOR ADMINISTRATION OF RESERVE COMPONENTS.

(a) Officers.--The text of section 12011 of title 10,
United States Code, is amended to read as follows:
``(a) Limitations.--(1) Of the total number of members of a
reserve component who are serving on full-time reserve
component duty at the end of any fiscal year, the number of
those members who may be serving in each of the grades of
major, lieutenant colonel, and colonel may not, as of the end
of that fiscal year, exceed the number determined in accordance
with the following table:

----------------------------------------------------------------------------------------------------------------
Number of officers of that reserve component who may be
serving in the grade of:
``Total number of members of a reserve component ---------------------------------------------------------
serving on full-time reserve component duty: Lieutenant
Major Colonel Colonel
----------------------------------------------------------------------------------------------------------------
Army Reserve:
10,000................................................ 1,390 740 230
11,000................................................ 1,529 803 242
12,000................................................ 1,668 864 252
13,000................................................ 1,804 924 262
14,000................................................ 1,940 984 272
15,000................................................ 2,075 1,044 282
16,000................................................ 2,210 1,104 291
17,000................................................ 2,345 1,164 300
18,000................................................ 2,479 1,223 309
19,000................................................ 2,613 1,282 318
20,000................................................ 2,747 1,341 327
21,000................................................ 2,877 1,400 336

Army National Guard:
20,000................................................ 1,500 850 325
22,000................................................ 1,650 930 350
24,000................................................ 1,790 1,010 370
26,000................................................ 1,930 1,085 385
28,000................................................ 2,070 1,160 400
30,000................................................ 2,200 1,235 405
32,000................................................ 2,330 1,305 408
34,000................................................ 2,450 1,375 411
36,000................................................ 2,570 1,445 411
38,000................................................ 2,670 1,515 411
40,000................................................ 2,770 1,580 411
42,000................................................ 2,837 1,644 411

Marine Corps Reserve:
1,100................................................. 106 56 20
1,200................................................. 110 60 21
1,300................................................. 114 63 22
1,400................................................. 118 66 23
1,500................................................. 121 69 24
1,600................................................. 124 72 25
1,700................................................. 127 75 26
1,800................................................. 130 78 27
1,900................................................. 133 81 28
2,000................................................. 136 84 29
2,100................................................. 139 87 30
2,200................................................. 141 90 31
2,300................................................. 143 92 32
2,400................................................. 145 94 33
2,500................................................. 147 96 34
2,600................................................. 149 98 35

Air Force Reserve:
500................................................... 83 85 50
1,000................................................. 155 165 95
1,500................................................. 220 240 135
2,000................................................. 285 310 170
2,500................................................. 350 369 203
3,000................................................. 413 420 220
3,500................................................. 473 464 230
4,000................................................. 530 500 240
4,500................................................. 585 529 247
5,000................................................. 638 550 254
5,500................................................. 688 565 261
6,000................................................. 735 575 268
7,000................................................. 770 595 280
8,000................................................. 805 615 290
10,000................................................ 835 635 300

Air National Guard:
5,000................................................. 333 335 251
6,000................................................. 403 394 260
7,000................................................. 472 453 269
8,000................................................. 539 512 278
9,000................................................. 606 571 287
10,000................................................ 673 630 296
11,000................................................ 740 688 305
12,000................................................ 807 742 314
13,000................................................ 873 795 323
14,000................................................ 939 848 332
15,000................................................ 1,005 898 341
16,000................................................ 1,067 948 350
17,000................................................ 1,126 998 359
18,000................................................ 1,185 1,048 368
19,000................................................ 1,235 1,098 377
20,000................................................ 1,283 1,148 380.
----------------------------------------------------------------------------------------------------------------

``(2) Of the total number of members of the Naval Reserve
who are serving on full-time reserve component duty at the end
of any fiscal year, the number of those members who may be
serving in each of the grades of lieutenant commander,
commander, and captain may not, as of the end of that fiscal
year, exceed the number determined in accordance with the
following table:

----------------------------------------------------------------------------------------------------------------
Number of officers who may be serving in the grade of:
``Total number of members of Naval Reserve serving on ---------------------------------------------------------
full-time reserve component duty Lieutenant
commander Commander Captain
----------------------------------------------------------------------------------------------------------------
10,000................................................ 807 447 141
11,000................................................ 867 467 153
12,000................................................ 924 485 163
13,000................................................ 980 503 173
14,000................................................ 1,035 521 183
15,000................................................ 1,088 538 193
16,000................................................ 1,142 555 203
17,000................................................ 1,195 565 213
18,000................................................ 1,246 575 223
19,000................................................ 1,291 585 233
20,000................................................ 1,334 595 242
21,000................................................ 1,364 603 250
22,000................................................ 1,384 610 258
23,000................................................ 1,400 615 265
24,000................................................ 1,410 620 270.
----------------------------------------------------------------------------------------------------------------

``(b) Determinations by Interpolation.--If the total number
of members of a reserve component serving on full-time reserve
component duty is between any two consecutive numbers in the
first column of the appropriate table in paragraph (1) or (2)
of subsection (a), the corresponding authorized strengths for
each of the grades shown in that table for that component are
determined by mathematical interpolation between the respective
numbers of the two strengths. If the total number of members of
a reserve component serving on full-time reserve component duty
is more or less than the highest or lowest number,
respectively, set forth in the first column of the appropriate
table in paragraph (1) or (2) of subsection (a), the Secretary
concerned shall fix the corresponding strengths for the grades
shown in that table at the same proportion as is reflected in
the nearest limit shown in the table.
``(c) Reallocations to Lower Grades.--Whenever the number
of officers serving in any grade for duty described in
subsection (a) is less than the number authorized for that
grade under this section, the difference between the two
numbers may be applied to increase the number authorized under
this section for any lower grade.
``(d) Secretarial Waiver.--(1) Upon determining that it is
in the national interest to do so, the Secretary of Defense may
increase for a particular fiscal year the number of reserve
officers that may be on full-time reserve component duty for a
reserve component in a grade referred to in a table in
subsection (a) by a number that does not exceed the number
equal to 5 percent of the maximum number specified for the
grade in that table.
``(2) Whenever the Secretary exercises the authority
provided in paragraph (1), the Secretary shall submit to the
Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives notice in
writing of the adjustment made.
``(e) Full-Time Reserve Component Duty Defined.--In this
section, the term `full-time reserve component duty' means the
following duty:
``(1) Active duty described in sections 10211,
10302, 10303, 10304, 10305, 12310, or 12402 of this
title.
``(2) Full-time National Guard duty (other than for
training) under section 502(f) of title 32.
``(3) Active duty described in section 708 of title
32.''.
(b) Senior Enlisted Members.--The text of section 12012 of
title 10, United States Code, is amended to read as follows:
``(a) Limitations.--Of the total number of members of a
reserve component who are serving on full-time reserve
component duty at the end of any fiscal year, the number of
those members in each of pay grades of E-8 and E-9 who may be
serving on active duty under section 10211 or 12310, or on
full-time National Guard duty under the authority of section
502(f) of title 32 (other than for training) in connection with
organizing, administering, recruiting, instructing, or training
the reserve components or the National Guard may not, as of the
end of that fiscal year, exceed the number determined in
accordance with the following table:

------------------------------------------------------------------------
Number of members of that reserve
``Total number of members of a component who may be serving in the
reserve component serving on full- grade of:
time reserve component duty: --------------------------------------
E-8 E-9
------------------------------------------------------------------------
Army Reserve:
10,000........................... 1,052 154
11,000........................... 1,126 168
12,000........................... 1,195 180
13,000........................... 1,261 191
14,000........................... 1,327 202
15,000........................... 1,391 213
16,000........................... 1,455 224
17,000........................... 1,519 235
18,000........................... 1,583 246
19,000........................... 1,647 257
20,000........................... 1,711 268
21,000........................... 1,775 278

Army National Guard:
20,000........................... 1,650 550
22,000........................... 1,775 615
24,000........................... 1,900 645
26,000........................... 1,945 675
28,000........................... 1,945 705
30,000........................... 1,945 725
32,000........................... 1,945 730
34,000........................... 1,945 735
36,000........................... 1,945 738
38,000........................... 1,945 741
40,000........................... 1,945 743
42,000........................... 1,945 743

Naval Reserve:
10,000........................... 340 143
11,000........................... 364 156
12,000........................... 386 169
13,000........................... 407 182
14,000........................... 423 195
15,000........................... 435 208
16,000........................... 447 221
17,000........................... 459 234
18,000........................... 471 247
19,000........................... 483 260
20,000........................... 495 273
21,000........................... 507 286
22,000........................... 519 299
23,000........................... 531 312
24,000........................... 540 325

Marine Corps Reserve:
1,100............................ 50 11
1,200............................ 55 12
1,300............................ 60 13
1,400............................ 65 14
1,500............................ 70 15
1,600............................ 75 16
1,700............................ 80 17
1,800............................ 85 18
1,900............................ 89 19
2,000............................ 93 20
2,100............................ 96 21
2,200............................ 99 22
2,300............................ 101 23
2,400............................ 103 24
2,500............................ 105 25
2,600............................ 107 26

Air Force Reserve:
500.............................. 75 40
1,000............................ 145 75
1,500............................ 208 105
2,000............................ 270 130
2,500............................ 325 150
3,000............................ 375 170
3,500............................ 420 190
4,000............................ 460 210
4,500............................ 495 230
5,000............................ 530 250
5,500............................ 565 270
6,000............................ 600 290
7,000............................ 670 330
8,000............................ 740 370
10,000........................... 800 400

Air National Guard
5,000............................ 1,020 405
6,000............................ 1,070 435
7,000............................ 1,120 465
8,000............................ 1,170 490
9,000............................ 1,220 510
10,000........................... 1,270 530
11,000........................... 1,320 550
12,000........................... 1,370 570
13,000........................... 1,420 589
14,000........................... 1,470 608
15,000........................... 1,520 626
16,000........................... 1,570 644
17,000........................... 1,620 661
18,000........................... 1,670 678
19,000........................... 1,720 695
20,000........................... 1,770 712.
------------------------------------------------------------------------

Subtitle C--Other Matters Relating to Personnel Strengths

SEC. 421. ADMINISTRATION OF END STRENGTHS.

(a) Increase in Percentage by Which Active Component End
Strengths May Be Increased.--Section 115(c)(1) of title 10,
United States Code, is amended by striking ``1 percent'' and
inserting ``2 percent''.
(b) Waiver of End Strengths During National Emergency.--The
text of section 123a of such title is amended to read as
follows:
``(a) During War or National Emergency.--If at the end of
any fiscal year there is in effect a war or national emergency,
the President may waive any statutory end strength with respect
to that fiscal year. Any such waiver may be issued only for a
statutory end strength that is prescribed by law before the
waiver is issued.
``(b) Upon Termination of War or National Emergency.--Upon
the termination of a war or national emergency with respect to
which the President has exercised the authority provided by
subsection (a), the President may defer the effectiveness of
any statutory end strength with respect to the fiscal year
during which the termination occurs. Any such deferral may not
extend beyond the last day of the sixth month beginning after
the date of such termination.
``(c) Statutory End Strength.--In this section, the term
`statutory end strength' means any end-strength limitation with
respect to a fiscal year that is prescribed by law for any
military or civilian component of the armed forces or of the
Department of Defense.''.

SEC. 422. ACTIVE DUTY END STRENGTH EXEMPTION FOR NATIONAL GUARD AND
RESERVE PERSONNEL PERFORMING FUNERAL HONORS
FUNCTIONS.

Section 115(d) of title 10, United States Code, is amended
by adding at the end the following new paragraphs:
``(10) Members of reserve components on active duty
to prepare for and to perform funeral honors functions
for funerals of veterans in accordance with section
1491 of this title.
``(11) Members on full-time National Guard duty to
prepare for and perform funeral honors functions for
funerals of veterans in accordance with section 1491 of
this title.''.

Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal year
2002 a total of $82,307,281,000. The authorization in the
preceding sentence supersedes any other authorization of
appropriations (definite or indefinite) for such purpose for
fiscal year 2002.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Subtitle B--Reserve Component Personnel Policy

Subtitle C--Joint Specialty Officers and Joint Professional Military
Education

Subtitle D--Military Education and Training

Subtitle E--Recruiting and Accession Programs

Subtitle F--Decorations, Awards, and Posthumous Commissions

Subtitle G--Funeral Honors Duty

Subtitle H--Military Spouses and Family Members

Subtitle I--Military Justice and Legal Assistance Matters

Subtitle J--Other Matters

Subtitle A--Officer Personnel Policy

SEC. 501. ENHANCED FLEXIBILITY FOR MANAGEMENT OF SENIOR GENERAL AND
FLAG OFFICER POSITIONS.

(a) Repeal of Limit on Number of Officers on Active Duty in
Grades of General and Admiral.--Section 528 of title 10, United
States Code, is repealed.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 32 of such title is amended by striking
the item relating to section 528.

SEC. 502. CERTIFICATIONS OF SATISFACTORY PERFORMANCE FOR RETIREMENT OF
OFFICERS IN GRADES ABOVE MAJOR GENERAL AND REAR
ADMIRAL.

Section 1370(c) of title 10, United States Code, is amended
by adding at the end the following new paragraph:
``(3)(A) The Secretary of Defense may delegate authority to
make a certification with respect to an officer under paragraph
(1) only to the Under Secretary of Defense for Personnel and
Readiness or the Deputy Under Secretary of Defense for
Personnel and Readiness.
``(B) If authority is delegated under subparagraph (A) and,
in the course of consideration of an officer for a
certification under paragraph (1), the Under Secretary or (if
such authority is delegated to both the Under and Deputy Under
Secretary) the Deputy Under Secretary makes a determination
described in subparagraph (C) with respect to that officer, the
Under Secretary or Deputy Under Secretary, as the case may be,
may not exercise the delegated authority in that case, but
shall refer the matter to the Secretary of Defense, who shall
personally determine whether to issue a certification under
paragraph (1) with respect to that officer.
``(C) A determination referred to in subparagraph (B) is a
determination that there is potentially adverse information
concerning an officer and that such information has not
previously been submitted to the Senate in connection with the
consideration by the Senate of a nomination of that officer for
an appointment for which the advice and consent of the Senate
is required.''.

SEC. 503. REVIEW OF ACTIONS OF SELECTION BOARDS.

(a) In General.--(1) Chapter 79 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 1558. Review of actions of selection boards: correction of
military records by special boards; judicial review

``(a) Correction of Military Records.--The Secretary of a
military department may correct a person's military records in
accordance with a recommendation made by a special board. Any
such correction may be made effective as of the effective date
of the action taken on a report of a previous selection board
that resulted in the action corrected in the person's military
records.
``(b) Definitions.--In this section:
``(1) Special board.--(A) The term `special board'
means a board that the Secretary of a military
department convenes under any authority to consider
whether to recommend a person for appointment,
enlistment, reenlistment, assignment, promotion,
retention, separation, retirement, or transfer to
inactive status in a reserve component instead of
referring the records of that person for consideration
by a previously convened selection board which
considered or should have considered that person.
``(B) Such term includes a board for the correction
of military records convened under section 1552 of this
title, if designated as a special board by the
Secretary concerned.
``(C) Such term does not include a promotion
special selection board convened under section 628 or
14502 of this title.
``(2) Selection board.--(A) The term `selection
board' means a selection board convened under section
573(c), 580, 580a, 581, 611(b), 637, 638, 638a,
14101(b), 14701, 14704, or 14705 of this title, and any
other board convened by the Secretary of a military
department under any authority to recommend persons for
appointment, enlistment, reenlistment, assignment,
promotion, or retention in the armed forces or for
separation, retirement, or transfer to inactive status
in a reserve component for the purpose of reducing the
number of persons serving in the armed forces.
``(B) Such term does not include any of the
following:
``(i) A promotion board convened under
section 573(a), 611(a), or 14101(a) of this
title.
``(ii) A special board.
``(iii) A special selection board convened
under section 628 of this title.
``(iv) A board for the correction of
military records convened under section 1552 of
this title.
``(3) Involuntarily board-separated.--The term
`involuntarily board-separated' means separated or
retired from an armed force, or transferred to the
Retired Reserve or to inactive status in a reserve
component, as a result of a recommendation of a
selection board.
``(c) Relief Associated With Correction of Certain
Actions.--(1) The Secretary of the military department
concerned shall ensure that an involuntarily board-separated
person receives relief under paragraph (2) or under paragraph
(3) if the person, as a result of a correction of the person's
military records under subsection (a), becomes entitled to
retention on or restoration to active duty or to active status
in a reserve component.
``(2)(A) A person referred to in paragraph (1) shall, with
that person's consent, be restored to the same status, rights,
and entitlements (less appropriate offsets against back pay and
allowances) in that person's armed force as the person would
have had if the person had not been selected to be
involuntarily board-separated as a result of an action the
record of which is corrected under subsection (a). An action
under this subparagraph is subject to subparagraph (B).
``(B) Nothing in subparagraph (A) may be construed to
permit a person to be on active duty or in an active status in
a reserve component after the date on which the person would
have been separated, retired, or transferred to the Retired
Reserve or to inactive status in a reserve component if the
person had not been selected to be involuntarily board-
separated in an action of a selection board the record of which
is corrected under subsection (a).
``(3) If an involuntarily board-separated person referred
to in paragraph (1) does not consent to a restoration of
status, rights, and entitlements under paragraph (2), the
Secretary concerned shall pay that person back pay and
allowances (less appropriate offsets), and shall provide that
person service credit, for the period--
``(A) beginning on the date of the person's
separation, retirement, or transfer to the Retired
Reserve or to inactive status in a reserve component,
as the case may be; and
``(B) ending on the earlier of--
``(i) the date on which the person would
have been so restored under paragraph (2), as
determined by the Secretary concerned; or
``(ii) the date on which the person would
otherwise have been separated, retired, or
transferred to the Retired Reserve or to
inactive status in a reserve component, as the
case may be.
``(d) Finality of Unfavorable Action.--If a special board
makes a recommendation not to correct the military records of a
person regarding action taken in the case of that person on the
basis of a previous report of a selection board, the action
previously taken on that report shall be considered as final as
of the date of the action taken on that report.
``(e) Regulations.--(1) The Secretary of each military
department shall prescribe regulations to carry out this
section. Regulations under this subsection may not apply to
subsection (f), other than to paragraph (4)(C) of that
subsection.
``(2) The Secretary may prescribe in the regulations under
paragraph (1) the circumstances under which consideration by a
special board may be provided for under this section, including
the following:
``(A) The circumstances under which consideration
of a person's case by a special board is contingent
upon application by or for that person.
``(B) Any time limits applicable to the filing of
an application for such consideration.
``(3) Regulations prescribed by the Secretary of a military
department under this subsection may not take effect until
approved by the Secretary of Defense.
``(f) Judicial Review.--(1) A person seeking to challenge
an action or recommendation of a selection board, or an action
taken by the Secretary of the military department concerned on
the report of a selection board, is not entitled to relief in
any judicial proceeding unless the action or recommendation has
first been considered by a special board under this section or
the Secretary concerned has denied the convening of such a
board for such consideration.
``(2)(A) A court of the United States may review a
determination by the Secretary of a military department not to
convene a special board in the case of any person. In any such
case, the court may set aside the Secretary's determination
only if the court finds the determination to be--
``(i) arbitrary or capricious;
``(ii) not based on substantial evidence;
``(iii) a result of material error of fact or
material administrative error; or
``(iv) otherwise contrary to law.
``(B) If a court sets aside a determination by the
Secretary of a military department not to convene a special
board, it shall remand the case to the Secretary concerned, who
shall provide for consideration by a special board.
``(3) A court of the United States may review a
recommendation of a special board or an action of the Secretary
of the military department concerned on the report of a special
board. In any such case, a court may set aside the action only
if the court finds that the recommendation or action was--
``(A) arbitrary or capricious;
``(B) not based on substantial evidence;
``(C) a result of material error of fact or
material administrative error; or
``(D) otherwise contrary to law.
``(4)(A) If, six months after receiving a complete
application for consideration by a special board in any case,
the Secretary concerned has not convened a special board and
has not denied consideration by a special board in that case,
the Secretary shall be deemed for the purposes of this
subsection to have denied consideration of the case by a
special board.
``(B) If, six months after the convening of a special board
in any case, the Secretary concerned has not taken final action
on the report of the special board, the Secretary shall be
deemed for the purposes of this subsection to have denied
relief in such case.
``(C) Under regulations prescribed under subsection (e),
the Secretary of a military department may waive the
applicability of subparagraph (A) or (B) in a case if the
Secretary determines that a longer period for consideration of
the case is warranted. Such a waiver may be for an additional
period of not more than six months. The Secretary concerned may
not delegate authority to make a determination under this
subparagraph.
``(g) Existing Jurisdiction.--Nothing in this section
limits--
``(1) the jurisdiction of any court of the United
States under any provision of law to determine the
validity of any law, regulation, or policy relating to
selection boards; or
``(2) the authority of the Secretary of a military
department to correct a military record under section
1552 of this title.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``1558. Review of actions of selection boards: correction of military
records by special boards; judicial review.''.

(b) Special Selection Boards.--Section 628 of such title is
amended--
(1) by redesignating subsection (g) as subsection
(k); and
(2) by inserting after subsection (f) the following
new subsections:
``(g) Judicial Review.--(1)(A) A court of the United States
may review a determination by the Secretary of a military
department under subsection (a)(1) or (b)(1) not to convene a
special selection board in the case of any person. In any such
case, the court may set aside the Secretary's determination
only if the court finds the determination to be--
``(i) arbitrary or capricious;
``(ii) not based on substantial evidence;
``(iii) a result of material error of fact or
material administrative error; or
``(iv) otherwise contrary to law.
``(B) If a court sets aside a determination by the
Secretary of a military department not to convene a special
selection board under this section, it shall remand the case to
the Secretary concerned, who shall provide for consideration by
such a board.
``(2) A court of the United States may review the action of
a special selection board convened under this section or an
action of the Secretary of the military department concerned on
the report of such a board. In any such case, a court may set
aside the action only if the court finds that the action was--
``(A) arbitrary or capricious;
``(B) not based on substantial evidence;
``(C) a result of material error of fact or
material administrative error; or
``(D) otherwise contrary to law.
``(3)(A) If, six months after receiving a complete
application for consideration by a special selection board
under this section in any case, the Secretary concerned has not
convened such a board and has not denied consideration by such
a board in that case, the Secretary shall be deemed for the
purposes of this subsection to have denied the consideration of
the case by such a board.
``(B) If, six months after the convening of a special
selection board under this section in any case, the Secretary
concerned has not taken final action on the report of the
board, the Secretary shall be deemed for the purposes of this
subsection to have denied relief in such case.
``(C) Under regulations prescribed under subsection (j),
the Secretary of a military department may waive the
applicability of subparagraph (A) or (B) in a case if the
Secretary determines that a longer period for consideration of
the case is warranted. Such a waiver may be for an additional
period of not more than six months. The Secretary concerned may
not delegate authority to make a determination under this
subparagraph.
``(h) Limitations of Other Jurisdiction.--No official or
court of the United States may, with respect to a claim based
to any extent on the failure of a person to be selected for
promotion by a promotion board--
``(1) consider the claim unless the person has
first been referred by the Secretary concerned to a
special selection board convened under this section and
acted upon by that board and the report of the board
has been approved by the President; or
``(2) except as provided in subsection (g), grant
any relief on the claim unless the person has been
selected for promotion by a special selection board
convened under this section to consider the person for
recommendation for promotion and the report of the
board has been approved by the President.
``(i) Existing Jurisdiction.--Nothing in this section
limits--
``(1) the jurisdiction of any court of the United
States under any provision of law to determine the
validity of any law, regulation, or policy relating to
selection boards; or
``(2) the authority of the Secretary of a military
department to correct a military record under section
1552 of this title.
``(j) Regulations.--(1) The Secretary of each military
department shall prescribe regulations to carry out this
section. Regulations under this subsection may not apply to
subsection (g), other than to paragraph (3)(C) of that
subsection.
``(2) The Secretary may prescribe in the regulations under
paragraph (1) the circumstances under which consideration by a
special selection board may be provided for under this section,
including the following:
``(A) The circumstances under which consideration
of a person's case by a special selection board is
contingent upon application by or for that person.
``(B) Any time limits applicable to the filing of
an application for such consideration.
``(3) Regulations prescribed by the Secretary of a military
department under this subsection may not take effect until
approved by the Secretary of Defense.''.
(c) Effective Date.--(1) Except as provided in paragraph
(2), the amendments made by this section shall apply with
respect to any proceeding pending on or after the date of the
enactment of this Act without regard to whether a challenge to
an action of a selection board of any of the Armed Forces being
considered in the proceeding was initiated before, on, or after
that date.
(2) The amendments made by this section shall not apply
with respect to any action commenced in a court of the United
States before the date of the enactment of this Act.

SEC. 504. TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR
ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-DUTY
LIST OFFICERS IN GRADES OF FIRST LIEUTENANT AND
LIEUTENANT (JUNIOR GRADE).

(a) Authority.--Subsection (a)(1)(B) of section 619 of
title 10, United States Code, is amended by inserting before
the period at the end the following: ``, except that the
minimum period of service in effect under this subparagraph
before October 1, 2005, shall be eighteen months''.
(b) Stylistic Amendments.--Such section is further amended
as follows:
(1) Subsection (a) is amended by striking
``(a)(1)'' and inserting ``(a) Time-in-Grade
Requirements.--(1)''.
(2) Subsection (b) is amended by striking
``(b)(1)'' and inserting ``(b) Continued Eligibility
for Consideration for Promotion of Officers Who Have
Previously Failed of Selection.--(1)''.
(3) Subsection (c) is amended by striking
``(c)(1)'' and inserting ``(c) Officers To Be
Considered by Promotion Boards.--(1)''.
(4) Subsection (d) is amended by inserting
``Certain Officers Not To Be Considered.--'' after
``(d)''.
(c) Technical Amendment.--Subsection (a)(4) of such section
is amended by striking ``clause (A)'' and inserting
``subparagraph (A)''.

SEC. 505. AUTHORITY FOR PROMOTION WITHOUT SELECTION BOARD CONSIDERATION
FOR ALL FULLY QUALIFIED OFFICERS IN GRADE OF FIRST
LIEUTENANT OR LIEUTENANT (JUNIOR GRADE) IN THE
NAVY.

(a) Active-Duty List Promotions.--(1) Section 624(a) of
title 10, United States Code, is amended by adding at the end
the following new paragraph:
``(3)(A) Except as provided in subsection (d), officers on
the active-duty list in the grade of first lieutenant or, in
the case of the Navy, lieutenant (junior grade) who are on an
approved all-fully-qualified-officers list shall be promoted to
the next higher grade in accordance with regulations prescribed
by the Secretary concerned.
``(B) An all-fully-qualified-officers list shall be
considered to be approved for purposes of subparagraph (A) when
the list is approved by the President. When so approved, such a
list shall be treated in the same manner as a promotion list
under this chapter.
``(C) The Secretary of a military department may make a
recommendation to the President for approval of an all-fully-
qualified-officers list only when the Secretary determines that
all officers on the list are needed in the next higher grade to
accomplish mission objectives.
``(D) For purposes of this paragraph, an all-fully-
qualified-officers list is a list of all officers on the
active-duty list in a grade who the Secretary of the military
department concerned determines--
``(i) are fully qualified for promotion to the next
higher grade; and
``(ii) would be eligible for consideration for
promotion to the next higher grade by a selection board
convened under section 611(a) of this title upon the
convening of such a board.''.
(2) Section 631 of such title is amended by adding at the
end the following new subsection:
``(d) For the purposes of this chapter, an officer of the
Army, Air Force, or Marine Corps who holds the grade of first
lieutenant, and an officer of the Navy who holds the grade of
lieutenant (junior grade), shall be treated as having failed of
selection for promotion if the Secretary of the military
department concerned determines that the officer would be
eligible for consideration for promotion to the next higher
grade by a selection board convened under section 611(a) of
this title if such a board were convened but is not fully
qualified for promotion when recommending for promotion under
section 624(a)(3) of this title all fully qualified officers of
the officer's armed force in such grade who would be eligible
for such consideration.''.
(3) Section 611 of such title is amended--
(A) in subsection (a)--
(i) by striking ``Under'' and all that
follows through ``require,'' and inserting
``Whenever the needs of the service require,
the Secretary of the military department
concerned''; and
(ii) by adding at the end the following new
sentence: ``The preceding sentence does not
require the convening of a selection board in
the case of officers in the permanent grade of
first lieutenant or, in the case of the Navy,
lieutenant (junior grade) when the Secretary
concerned recommends for promotion to the next
higher grade under section 624(a)(3) of this
title all such officers whom the Secretary
finds to be fully qualified for promotion.'';
(B) in subsection (b), by striking ``Under'' and
all that follows through ``require,'' and inserting
``Whenever the needs of the service require, the
Secretary of the military department concerned''; and
(C) by adding at the end the following new
subsection:
``(c) The convening of selection boards under subsections
(a) and (b) shall be under regulations prescribed by the
Secretary of Defense.''.
(b) Reserve Active-Status List Promotions.--(1) Section
14308(b) of title 10, United States Code, is amended by adding
at the end the following new paragraph:
``(4)(A) Officers in the permanent grade of first
lieutenant or, in the case of the Navy, lieutenant (junior
grade) who are on an approved all-fully-qualified-officers list
shall be promoted to the next higher grade in accordance with
regulations prescribed by the Secretary concerned. Such
promotions shall be in the manner specified in section 12203 of
this title.
``(B) An all-fully-qualified-officers list shall be
considered to be approved for purposes of subparagraph (A) when
the list is approved by the President. When so approved, such a
list shall be treated in the same manner as a promotion list
under this chapter and chapter 1403 of this title.
``(C) The Secretary of a military department may make a
recommendation to the President for approval of an all-fully-
qualified-officers list only when the Secretary determines that
all officers on the list are needed in the next higher grade to
accomplish mission objectives.
``(D) For purposes of this paragraph, an all-fully-
qualified-officers list is a list of all officers on the
reserve active-status list in a grade who the Secretary of the
military department concerned determines--
``(i) are fully qualified for promotion to the next
higher grade; and
``(ii) would be eligible for consideration for
promotion to the next higher grade by a selection board
convened under section 14101(a) of this title upon the
convening of such a board.''.
(2) Section 14504 of such title is amended by adding at the
end the following new subsection:
``(c) Officers in Grade of First Lieutenant or Lieutenant
(Junior Grade) Found Not Fully Qualified for Promotion.--For
the purposes of this chapter, an officer of the Army, Air
Force, or Marine Corps on a reserve active-status list who
holds the grade of first lieutenant, and an officer of the Navy
on a reserve active-status list who holds the grade of
lieutenant (junior grade), shall be treated as having failed of
selection for promotion if the Secretary of the military
department concerned determines that the officer would be
eligible for consideration for promotion to the next higher
grade by a selection board convened under section 14101(a) of
this title if such a board were convened but is not fully
qualified for promotion when recommending for promotion under
section 14308(b)(4) of this title all fully qualified officers
of the officer's armed force in such grade who would be
eligible for such consideration.''.
(3) Section 14101(a) of such title is amended by adding at
the end the following new paragraph:
``(3) Paragraph (1) does not require the convening of a
selection board in the case of officers in the permanent grade
of first lieutenant or, in the case of the Navy, lieutenant
(junior grade) when the Secretary concerned recommends for
promotion to the next higher grade under section 14308(b)(4) of
this title all such officers whom the Secretary finds to be
fully qualified for promotion.''.
(c) Conforming Amendments.--Title 10, United States Code,
is amended as follows:
(1)(A) Section 619(d) is amended by adding at the
end the following new paragraph:
``(4) An officer in the grade of first lieutenant
or, in the case of the Navy, lieutenant (junior grade)
who is on an approved all-fully-qualified-officers list
under section 624(a)(3) of this title.''.
(B) Section 14301(c) is amended by adding at the
end the following new paragraph:
``(5) An officer in the grade of first lieutenant
or, in the case of the Navy, lieutenant (junior grade)
who is on an approved all-fully-qualified-officers list
under section 14308(b)(4) of this title.''.
(2)(A) Section 624(d) is amended--
(i) in the second sentence of paragraph
(1), by inserting after ``on the promotion
list'' the following: ``(including an approved
all-fully-qualified-officers list, if
applicable)''; and
(ii) in the second sentence of paragraph
(2), by inserting after ``to such grade, the
officer'' the following: ``shall be retained on
the promotion list (including an approved all-
fully-qualified-officers list, if applicable)
and''.
(B) Section 14311 is amended--
(i) in subsection (a)(2), by inserting
after ``on the promotion list'' the following:
``(including an approved all-fully-qualified-
officers list, if applicable)''; and
(ii) in subsection (b), by inserting in the
second sentence after ``on the promotion list''
the following: ``(including an approved all-
fully-qualified-officers list, if
applicable)''.
(3)(A) Section 628(a)(1) is amended by inserting
after ``not so considered,'' the following: ``or the
name of a person that should have been placed on an
all-fully-qualified-officers list under section
624(a)(3) of this title was not so placed,''.
(B) Section 14502(a)(1) is amended by inserting
after ``because of administrative error,'' the
following: ``or whose name was not placed on an all-
fully-qualified-officers list under section 14308(b)(4)
of this title because of administrative error,''.
(4) Section 1211(e) is amended by inserting after
``a promotion list,'' the following: ``an approved all-
fully-qualified-officers list,''.
(d) Technical Amendments To Strike Certain DOPMA References
to Regular Officers.--Chapter 36 of such title is amended as
follows:
(1) Section 624(c) is amended--
(A) by inserting ``, in the case of
officers of the Army, Air Force, or Marine
Corps,'' after ``captain''; and
(B) by inserting ``, in the case of
officers of the Navy,'' after ``or lieutenant''
the second place it appears.
(2) Section 630 is amended by striking ``regular''
both places it appears.
(3) Sections 631(a) and 632(a) are each amended--
(A) by striking ``Regular Army, Regular Air
Force, or Regular Marine Corps'' and inserting
``Army, Air Force, or Marine Corps on the
active-duty list'';
(B) by striking ``Regular Navy'' and
inserting ``Navy on the active-duty list''; and
(C) by striking ``regular'' each place it
appears.
(4)(A) The heading of section 630 and the item
relating to that section in the table of sections at
the beginning of subchapter III are each amended by
striking the third word.
(B) The heading of section 631 and the item
relating to that section in the table of sections at
the beginning of subchapter III are each amended by
striking the eighth word.
(C) The heading of section 632 and the item
relating to that section in the table of sections at
the beginning of subchapter III are each amended by
striking the eighth and twenty-first words.

SEC. 506. AUTHORITY TO ADJUST DATE OF RANK OF CERTAIN PROMOTIONS
DELAYED BY REASON OF UNUSUAL CIRCUMSTANCES.

(a) Active Duty Officers.--Subsection 741(d) of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
``(4)(A) The Secretary concerned may adjust the date of
rank of an officer appointed under section 624(a) of this title
to a higher grade that is not a general officer or flag officer
grade if the appointment of that officer to that grade is
delayed from the date on which (as determined by the Secretary)
it would otherwise have been made by reason of unusual
circumstances (as determined by the Secretary) that cause an
unintended delay in--
``(i) the processing or approval of the report of
the selection board recommending the appointment of
that officer to that grade; or
``(ii) the processing or approval of the promotion
list established on the basis of that report.
``(B) The adjusted date of rank applicable to the grade of
an officer under subparagraph (A) shall be consistent--
``(i) with the officer's position on the promotion
list for that grade and competitive category when
additional officers in that grade and competitive
category were needed; and
``(ii) with compliance with the applicable
authorized strengths for officers in that grade and
competitive category.
``(C) The adjusted date of rank applicable to the grade of
an officer under subparagraph (A) shall be the effective date
for--
``(i) the officer's pay and allowances for that
grade; and
``(ii) the officer's position on the active-duty
list.
``(D) When under subparagraph (A) the Secretary concerned
adjusts the date of rank of an officer in a grade to which the
officer was appointed by and with the advice and consent of the
Senate and the adjustment is to a date before the date of the
advice and consent of the Senate to that appointment, the
Secretary shall promptly transmit to the Committee on Armed
Services of the Senate a notification of that adjustment. Any
such notification shall include the name of the officer and a
discussion of the reasons for the adjustment of date of rank.
``(E) Any adjustment in date of rank under this paragraph
shall be made under regulations prescribed by the Secretary of
Defense, which shall apply uniformly among the Army, Navy, Air
Force, and Marine Corps.''.
(b) Reserve Officers.--(1) Section 14308(c) of such title
is amended--
(A) by redesignating paragraph (2) as paragraph
(3); and
(B) by inserting after paragraph (1) the following
new paragraph (2):
``(2) The date of rank of an officer appointed to a higher
grade under this section may be adjusted in the same manner as
an adjustment may be made under section 741(d)(4) of this title
in the date of rank of an officer appointed to a higher grade
under section 624(a) of this title. In any use of the authority
under the preceding sentence, subparagraph (C)(ii) of such
section shall be applied by substituting `reserve active-status
list' for `active-duty list'.''.
(2) Paragraph (3) of such section, as redesignated by
paragraph (1)(A), is amended by inserting ``provided in
paragraph (2) or as otherwise'' after ``Except as''.
(c) Effective Date.--(1) Paragraph (4) of section 741(d) of
title 10, United States Code, as added by subsection (a), and
paragraph (2) of section 14308(c) of such title, as added by
subsection (b), shall apply with respect to any report of a
selection board recommending officers for promotion to the next
higher grade that is submitted to the Secretary of the military
department concerned on or after the date of the enactment of
this Act.
(2) The Secretary of the military department concerned may
apply the applicable paragraph referred to in paragraph (1) in
the case of an appointment of an officer to a higher grade
resulting from a report of a selection board submitted to the
Secretary before the date of the enactment of this Act if the
Secretary determines that such appointment would have been made
on an earlier date that is on or after October 1, 2001, and was
delayed under the circumstances specified in paragraph (4) of
section 741(d) of title 10, United States Code, as added by
subsection (a).

SEC. 507. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF
MANDATORY RETIREMENT OR SEPARATION.

The text of section 640 of title 10, United States Code, is
amended to read as follows:
``(a) If the Secretary of the military department concerned
determines that the evaluation of the physical condition of an
officer and determination of the officer's entitlement to
retirement or separation for physical disability require
hospitalization or medical observation and that such
hospitalization or medical observation cannot be completed with
confidence in a manner consistent with the member's well being
before the date on which the officer would otherwise be
required to retire or be separated under this title, the
Secretary may defer the retirement or separation of the officer
under this title.
``(b) A deferral of retirement or separation under
subsection (a) may not extend for more than 30 days after
completion of the evaluation requiring hospitalization or
medical observation.''.

SEC. 508. AUTHORITY FOR LIMITED EXTENSION ON ACTIVE DUTY OF MEMBERS
SUBJECT TO MANDATORY RETIREMENT OR SEPARATION.

(a) Section 12305 Stop-Loss Authority.--Section 12305 of
title 10, United States Code, is amended by adding at the end
the following new subsection:
``(c) Upon the termination of a suspension made under the
authority of subsection (a) of a provision of law otherwise
requiring the separation or retirement of officers on active
duty because of age, length of service or length of service in
grade, or failure of selection for promotion, the Secretary
concerned shall extend by up to 90 days the otherwise required
separation or retirement date of any officer covered by the
suspended provision whose separation or retirement date, but
for the suspension, would have been before the date of the
termination of the suspension or within 90 days after the date
of such termination.''.
(b) Section 123 Stop-Loss Authority.--Section 123 of such
title is amended by adding at the end the following new
subsection:
``(d) Upon the termination of a suspension made under the
authority of subsection (a) of a provision of law otherwise
requiring the separation or retirement of officers on active
duty because of age, length of service or length of service in
grade, or failure of selection for promotion, the Secretary
concerned shall extend by up to 90 days the otherwise required
separation or retirement date of any officer covered by the
suspended provision whose separation or retirement date, but
for the suspension, would have been before the date of the
termination of the suspension or within 90 days after the date
of such termination.''.

SEC. 509. EXEMPTION FROM CERTAIN ADMINISTRATIVE LIMITATIONS FOR RETIRED
OFFICERS ORDERED TO ACTIVE DUTY AS DEFENSE OR
SERVICE ATTACHES.

(a) Limitation of Period of Recalled Service.--Section
688(e)(2) of title 10, United States Code, is amended by adding
at the end the following new subparagraph:
``(D) An officer who is assigned to duty as a
defense attache or service attache for the period of
active duty to which ordered.''.
(b) Limitation on Number of Recalled Officers on Active
Duty.--Section 690(b)(2) of such title is amended by adding at
the end the following new subparagraph:
``(E) An officer who is assigned to duty as a
defense attache or service attache for the period of
active duty to which ordered.''.
(c) Applicability.--The amendments made by subsections (a)
and (b) shall apply with respect to officers serving on active
duty as a defense attache or service attache on or after the
date of the enactment of this Act.

SEC. 510. OFFICER IN CHARGE OF UNITED STATES NAVY BAND.

(a) Detail and Grade.--Section 6221 of title 10, United
States Code, is amended to read as follows:

Sec. 6221. United States Navy Band; officer in charge

``(a) There is a Navy band known as the United States Navy
Band.
``(b)(1) An officer of the Navy designated for limited duty
under section 5589 or 5596 of this title who is serving in a
grade above lieutenant may be detailed by the Secretary of the
Navy as Officer in Charge of the United States Navy Band.
``(2) While serving as Officer in Charge of the United
States Navy Band, an officer shall hold the grade of captain if
appointed to that grade by the President, by and with the
advice and consent of the Senate. Such an appointment may be
made notwithstanding section 5596(d) of this title.''.
(b) Clerical Amendment.--The item relating to such section
in the table of sections at the beginning of chapter 565 of
such title is amended to read as follows:

``6221. United States Navy Band; officer in charge.''.

Subtitle B--Reserve Component Personnel Policy

SEC. 511. PLACEMENT ON ACTIVE-DUTY LIST OF CERTAIN RESERVE OFFICERS ON
ACTIVE DUTY FOR A PERIOD OF THREE YEARS OR LESS.

(a) Clarification of Exemption.--Section 641(1)(D) of title
10, United States Code, is amended to read as follows:
``(D) on active duty under section 12301(d)
of this title, other than as provided under
subparagraph (C), if the call or order to
active duty, under regulations prescribed by
the Secretary concerned, specifies a period of
three years or less and continued placement on
the reserve active-status list;''.
(b) Retroactive Application.--(1) The Secretary of the
military department concerned may provide that an officer who
was excluded from the active-duty list under section 641(1)(D)
of title 10, United States Code, as amended by section 521 of
the Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-398;
114 Stat. 1654A-108), shall be considered to have been on the
active-duty list during the period beginning on the date on
which the officer was so excluded and ending on the date of the
enactment of this Act.
(2) The Secretary of the military department concerned may
provide that a Reserve officer who was placed on the active-
duty list on or after October 30, 1997, shall be placed on the
reserve active-status list if the officer otherwise meets the
conditions specified in section 641(1)(D) of title 10, United
States Code, as amended by subsection (a).

SEC. 512. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR APPOINTMENT
OF RESERVE OFFICERS TO GRADES ABOVE FIRST
LIEUTENANT.

(a) Reauthorization of Waiver Authority for Army OCS
Graduates and Inclusion of Certain Marine Officers.--Section
12205 of title 10, United States Code, is amended by adding at
the end the following new subsection:
``(d) Waiver Authority for Army OCS Graduates and Certain
Marine Corps Officers.--(1) The Secretary of the Army may waive
the applicability of subsection (a) to any officer whose
original appointment in the Army as a Reserve officer is
through the Army Officer Candidate School program.
``(2) The Secretary of the Navy may waive the applicability
of subsection (a) to any officer whose original appointment in
the Marine Corps as a Reserve officer is through the Marine
Corps meritorious commissioning program.
``(3) Any such waiver shall be made on a case-by-case
basis, considering the individual circumstances of the officer
involved, and may continue in effect for no more than two years
after the waiver is granted. The Secretary concerned may
provide for such a waiver to be effective before the date of
the waiver, as appropriate in an individual case.''.
(b) Effective Date.--Subsection (d) of section 12205 of
title 10, United States Code, as added by subsection (a), shall
apply with respect to officers appointed before, on, or after
the date of the enactment of this Act.

SEC. 513. IMPROVED DISABILITY BENEFITS FOR CERTAIN RESERVE COMPONENT
MEMBERS.

(a) Medical and Dental Care.--Sections 1074a(a)(3) and
1076(a)(2)(C) of title 10, United States Code, are each amended
by striking ``, if the'' and all that follows through
``member's residence''.
(b) Eligibility for Disability Retirement or Separation.--
Sections 1204(2)(B)(iii) and 1206(2)(B)(iii) of title 10,
United States Code, are each amended by striking ``, if the''
and all that follows through ``member's residence''.
(c) Recovery, Care, and Disposition of Remains.--Section
1481(a)(2)(D) of title 10, United States Code, is amended by
striking ``, if the site is outside reasonable commuting
distance from the member's residence''.
(d) Entitlement to Basic Pay.--Subsections (g)(1)(D) and
(h)(1)(D) of section 204 of title 37, United States Code, are
amended by striking ``, if the site is outside reasonable
commuting distance from the member's residence''.
(e) Compensation for Inactive-Duty Training.--Section
206(a)(3)(C) of title 37, United States Code, is amended by
striking ``, if the site is outside reasonable commuting
distance from the member's residence''.

SEC. 514. TIME-IN-GRADE REQUIREMENT FOR RESERVE COMPONENT OFFICERS
RETIRED WITH A NONSERVICE CONNECTED DISABILITY.

Section 1370(d)(3)(B) of title 10, United States Code, is
amended to read as follows:
``(B) A person covered by subparagraph (A) who has
completed at least six months of satisfactory service in grade
may be credited with satisfactory service in the grade in which
serving at the time of transfer or discharge, notwithstanding
failure of the person to complete three years of service in
that grade, if that person is transferred from an active status
or discharged as a reserve commissioned officer--
``(i) solely due to the requirements of a
nondiscretionary provision of law requiring that
transfer or discharge due to the person's age or years
of service; or
``(ii) because the person no longer meets the
qualifications for membership in the Ready Reserve
solely because of a physical disability, as determined,
at a minimum, by a medical evaluation board and at the
time of such transfer or discharge such person
(pursuant to section 12731b of this title or otherwise)
meets the service requirements established by section
12731(a) of this title for eligibility for retired pay
under chapter 1223 of this title, unless the disability
is described in section 12731b of this title.''.

SEC. 515. EQUAL TREATMENT OF RESERVES AND FULL-TIME ACTIVE DUTY MEMBERS
FOR PURPOSES OF MANAGING PERSONNEL DEPLOYMENTS.

(a) Residence of Reserves at Home Station.--Paragraph (2)
of section 991(b) of title 10, United States Code, is amended
to read as follows:
``(2) In the case of a member of a reserve component who is
performing active service pursuant to orders that do not
establish a permanent change of station, the housing referred
to in paragraph (1) is any housing (which may include the
member's residence) that the member usually occupies for use
during off-duty time when on garrison duty at the member's
permanent duty station or homeport, as the case may be.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to duty performed on or after October
1, 2001.

SEC. 516. MODIFICATION OF PHYSICAL EXAMINATION REQUIREMENTS FOR MEMBERS
OF THE INDIVIDUAL READY RESERVE.

(a) IRR Requirement.--Section 10206 of title 10, United
States Code, is amended--
(1) in the matter in subsection (a) preceding
paragraph (1), by striking ``Ready Reserve'' and
inserting ``Selected Reserve'';
(2) by designating the second sentence of
subsection (a) as subsection (c);
(3) by redesignating subsection (b) as subsection
(d); and
(4) by inserting after subsection (a) the following
new subsection (b):
``(b) A member of the Individual Ready Reserve or inactive
National Guard shall be examined for physical fitness as
necessary to determine the member's physical fitness for--
``(1) military duty or promotion;
``(2) attendance at a school of the armed forces;
or
``(3) other action related to career
progression.''.
(b) Technical Amendment.--Subsection (a)(1) of such section
is amended by striking ``his'' and inserting ``the member's''.

SEC. 517. RETIREMENT OF RESERVE MEMBERS WITHOUT REQUIREMENT FOR FORMAL
APPLICATION OR REQUEST.

(a) Retired Reserve.--Section 10154(2) of title 10, United
States Code, is amended by striking ``upon their request''.
(b) Retirement for Failure of Selection of Promotion.--(1)
Paragraph (2) of section 14513 of such title is amended by
striking ``, if the officer is qualified and applies for such
transfer'' and inserting ``if the officer is qualified for such
transfer and does not request (in accordance with regulations
prescribed by the Secretary concerned) not to be transferred to
the Retired Reserve''.
(2)(A) The heading for such section is amended to read as
follows:

``Sec. 14513. Failure of selection for promotion: transfer, retirement,
or discharge''.

(B) The item relating to such section in the table of
sections at the beginning of chapter 1407 of such title is
amended to read as follows:

``14513. Failure of selection for promotion: transfer, retirement, or
discharge.''.

(c) Retirement for Years of Service or After Selection for
Early Removal.--Section 14514 of such title is amended--
(1) in paragraph (1), by striking ``, if the
officer is qualified and applies for such transfer''
and inserting ``if the officer is qualified for such
transfer and does not request (in accordance with
regulations prescribed by the Secretary concerned) not
to be transferred to the Retired Reserve''; and
(2) by striking paragraph (2) and inserting the
following:
``(2) be discharged from the officer's reserve
appointment if the officer is not qualified for
transfer to the Retired Reserve or has requested (in
accordance with regulations prescribed by the Secretary
concerned) not to be so transferred.''.
(d) Retirement for Age.--Section 14515 of such title is
amended--
(1) in paragraph (1), by striking ``, if the
officer is qualified and applies for such transfer''
and inserting ``if the officer is qualified for such
transfer and does not request (in accordance with
regulations prescribed by the Secretary concerned) not
to be transferred to the Retired Reserve''; and
(2) by striking paragraph (2) and inserting the
following:
``(2) be discharged from the officer's reserve
appointment if the officer is not qualified for
transfer to the Retired Reserve or has requested (in
accordance with regulations prescribed by the Secretary
concerned) not to be so transferred.''.
(e) Discharge or Retirement of Warrant Officers for Years
of Service or Age.--(1) Chapter 1207 of such title is amended
by adding at the end the following new section:

``Sec. 12244. Warrant officers: discharge or retirement for years of
service or for age

``Each reserve warrant officer of the Army, Navy, Air
Force, or Marine Corps who is in an active status and has
reached the maximum years of service or age prescribed by the
Secretary concerned shall--
``(1) be transferred to the Retired Reserve if the
warrant officer is qualified for such transfer and does
not request (in accordance with regulations prescribed
by the Secretary concerned) not to be transferred to
the Retired Reserve; or
``(2) be discharged if the warrant officer is not
qualified for transfer to the Retired Reserve or has
requested (in accordance with regulations prescribed by
the Secretary concerned) not to be so transferred.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``12244. Warrant officers: discharge or retirement for years of service
or for age.''.

(f) Discharge or Retirement of Enlisted Members for Years
of Service or Age.--(1) Chapter 1203 of such title is amended
by adding at the end the following new section:

``Sec. 12108. Enlisted members: discharge or retirement for years of
service or for age

``Each reserve enlisted member of the Army, Navy, Air
Force, or Marine Corps who is in an active status and has
reached the maximum years of service or age prescribed by the
Secretary concerned shall--
``(1) be transferred to the Retired Reserve if the
member is qualified for such transfer and does not
request (in accordance with regulations prescribed by
the Secretary concerned) not to be transferred to the
Retired Reserve; or
``(2) be discharged if the member is not qualified
for transfer to the Retired Reserve or has requested
(in accordance with regulations prescribed by the
Secretary concerned) not to be so transferred.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``12108. Enlisted members: discharge or retirement for years of service
or for age.''.

(g) Effective Date.--The amendments made by this section
shall take effect on the first day of the first month that
begins more than 180 days after the date of the enactment of
this Act.

SEC. 518. SPACE-REQUIRED TRAVEL BY RESERVES ON MILITARY AIRCRAFT.

(a) Correction of Impairment to Authorized Travel With
Allowances.--Subsection (a) of section 18505 of title 10,
United States Code, is amended by striking ``annual training
duty or'' each place it appears.
(b) Conforming Amendments.--The heading for such section,
and the item relating to such section in the table of sections
at the beginning of chapter 1805 of such title, are each
amended by striking the fourth, fifth, sixth, and seventh
words.

SEC. 519. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM PREMIUMS
FOR CERTAIN RESERVISTS CALLED TO ACTIVE DUTY IN
SUPPORT OF CONTINGENCY OPERATIONS.

(a) In General.--Subsection (e) of section 8906 of title 5,
United States Code, is amended by adding at the end the
following new paragraph:
``(3)(A) An employing agency may pay both the employee and
Government contributions, and any additional administrative
expenses otherwise chargeable to the employee, with respect to
health care coverage for an employee described in subparagraph
(B) and the family of such employee.
``(B) An employee referred to in subparagraph (A) is an
employee who--
``(i) is enrolled in a health benefits plan under
this chapter;
``(ii) is a member of a reserve component of the
armed forces;
``(iii) is called or ordered to active duty in
support of a contingency operation (as defined in
section 101(a)(13) of title 10);
``(iv) is placed on leave without pay or separated
from service to perform active duty; and
``(v) serves on active duty for a period of more
than 30 consecutive days.
``(C) Notwithstanding the one-year limitation on coverage
described in paragraph (1)(A), payment may be made under this
paragraph for a period not to exceed 18 months.''.
(b) Conforming Amendment.--The matter preceding paragraph
(1) in subsection (f) of such section is amended to read as
follows:
``(f) The Government contribution, and any additional
payments under subsection (e)(3)(A), for health benefits for an
employee shall be paid--''.
(c) Applicability.--The amendments made by this section
apply with respect to employees called to active duty on or
after December 8, 1995, and an agency may make retroactive
payments to such employees for premiums paid on or after such
date.

Subtitle C--Joint Specialty Officers and Joint Professional Military
Education

SEC. 521. NOMINATIONS AND PROMOTIONS FOR JOINT SPECIALTY OFFICERS.

(a) Selection of Officers for the Joint Speciality.--
Paragraph (2) of section 661(b) of title 10, United States
Code, is amended by striking ``The Secretaries'' and all that
follows through ``officers--'' and inserting ``Each officer on
the active-duty list on the date of the enactment of the
National Defense Authorization Act for Fiscal Year 2002 who has
not before that date been nominated for the joint specialty by
the Secretary of a military department, and each officer who is
placed on the active-duty list after such date, who meets the
requirements of subsection (c) shall automatically be
considered to have been nominated for the joint specialty. From
among those officers considered to be nominated for the joint
specialty, the Secretary may select for the joint specialty
only officers--''.
(b) Promotion Rate for Officers With the Joint Specialty.--
Paragraph (2) of section 662(a) of such title is amended by
striking ``promoted at a rate'' and inserting ``promoted--
``(A) during the three-year period
beginning on the date of the enactment of the
National Defense Authorization Act for Fiscal
Year 2002, at a rate not less than the rate for
officers of the same armed force in the same
grade and competitive category; and
``(B) after the end of the period specified
in subparagraph (A), at a rate''.

SEC. 522. JOINT DUTY CREDIT.

Paragraph (4) of section 664(i) of title 10, United States
Code, is amended--
(1) in subparagraph (E), by striking ``The'' and
inserting ``Except as provided in subparagraph (F),
the''; and
(2) by adding at the end the following new
subparagraph:
``(F) Service in a temporary joint task force
assignment not involved in combat or combat-related
operations may not be credited for the purposes of
joint duty, unless, and only if--
``(i) the service of the officer and the
nature of the joint task force not only meet
all criteria of this section, except
subparagraph (E), but also any additional
criteria the Secretary may establish;
``(ii) the Secretary has specifically
approved the operation conducted by the joint
task force as one that qualifies for joint
service credit, and notifies Congress upon each
approval, providing the criteria that led to
that approval; and
``(iii) the operation is conducted by the
joint task force in an environment where an
extremely fragile state of peace and high
potential for hostilities coexist.''.

SEC. 523. RETROACTIVE JOINT SERVICE CREDIT FOR DUTY IN CERTAIN JOINT
TASK FORCES.

(a) Authority.--In accordance with section 664(i) of title
10, United States Code, as amended by section 522, the
Secretary of Defense may award joint service credit to any
officer who served on the staff of a United States joint task
force headquarters in an operation and during the period set
forth in subsection (b) and who meets the criteria specified in
such section. To determine which officers qualify for such
retroactive credit, the Secretary shall undertake a case-by-
case review of the records of officers.
(b) Eligible Operations.--Service in the following
operations, during the specified periods, may be counted for
credit under subsection (a):
(1) Operation Northern Watch, during the period
beginning on August 1, 1992, and ending on a date to be
determined.
(2) Operation Southern Watch, during the period
beginning on August 27, 1992, and ending on a date to
be determined.
(3) Operation Able Sentry, during the period
beginning on June 26, 1993, and ending on February 28,
1999.
(4) Operation Joint Endeavor, during the period
beginning on December 25, 1995, and ending on December
19, 1996.
(5) Operation Joint Guard, during the period
beginning on December 20, 1996, and ending on June 20,
1998.
(6) Operation Desert Thunder, beginning on January
24, 1998, and ending on December 15, 1998.
(7) Operation Joint Forge, beginning on June 20,
1998, and ending on June 10, 1999.
(8) Operation Noble Anvil, beginning on March 24,
1999, and ending on July 20, 1999.
(9) Operation Joint Guardian, beginning on June 11,
1999, and ending on a date to be determined.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall submit to
Congress a report of the numbers, by service, grade, and
operation, of the officers given joint service credit in
accordance with this section.

SEC. 524. REVISION TO ANNUAL REPORT ON JOINT OFFICER MANAGEMENT.

Section 667 of title 10, United States Code, is amended--
(1) in paragraph (1)--
(A) by inserting ``(A)'' after ``(1)''; and
(B) by adding at the end the following new
subparagraph:
``(B) The number of officers who meet the criteria
for selection for the joint specialty but were not
selected, together with the reasons why.'';
(2) by amending paragraph (2) to read as follows:
``(2) The number of officers with the joint
specialty, shown by grade and branch or specialty and
by education.'';
(3) in paragraph (3)--
(A) in subparagraph (A) and (B), by
striking ``nominated'' and inserting
``selected'';
(B) by inserting ``and'' at the end of
subparagraph (D);
(C) by striking subparagraph (E); and
(D) by redesignating subparagraph (F) as
subparagraph (E);
(4) in paragraph (4)(A), by striking ``nominated''
and inserting ``selected'';
(5) in paragraph (14)--
(A) by inserting ``(A)'' after ``(14)'';
and
(B) by adding at the end the following new
subparagraph:
``(B) An assessment of the extent to which the
Secretary of each military department is assigning
personnel to joint duty assignments in accordance with
this chapter and the policies, procedures, and
practices established by the Secretary of Defense under
section 661(a) of this title.''; and
(6) in paragraph (16), by striking ``section
664(i)'' in the matter preceding subparagraph (A) and
in subparagraph (B) and inserting ``subparagraphs (E)
and (F) of section 664(i)(4)''.

SEC. 525. REQUIREMENT FOR SELECTION FOR JOINT SPECIALTY BEFORE
PROMOTION TO GENERAL OR FLAG OFFICER GRADE.

(a) Requirement.--Subsection (a) of section 619a of title
10, United States Code, is amended by striking ``unless'' and
all that follows and inserting ``unless--
``(1) the officer has completed a full tour of duty
in a joint duty assignment (as described in section
664(f) of this title); and
``(2) for appointments after September 30, 2007,
the officer has been selected for the joint specialty
in accordance with section 661 of this title.''.
(b) Waiver Authority.--Subsection (b) of that section is
amended by striking ``may waive subsection (a) in the following
circumstances:'' and inserting ``may waive paragraph (1) or
paragraph (2) of subsection (a), or both paragraphs (1) and (2)
of subsection (a), in the following circumstances:''.
(c) Proposed Legislative Changes.--Not later than December
1, 2002, the Secretary of Defense shall submit to Congress a
draft proposal for such legislative changes as the Secretary
considers needed to implement the amendment made by subsections
(a) and (b).

SEC. 526. INDEPENDENT STUDY OF JOINT OFFICER MANAGEMENT AND JOINT
PROFESSIONAL MILITARY EDUCATION REFORMS.

(a) Study.--The Secretary of Defense shall provide for an
independent study of the joint officer management system and
the joint professional military education system. The Secretary
shall ensure that the entity conducting the study is provided
such information and support as required. The Secretary shall
include in the contract for the study a requirement that the
entity conducting the study submit a report to Congress on the
study not later than one year after the date of the enactment
of this Act.
(b) Matters To Be Included With Respect to Joint Officer
Management.--With respect to the joint officer management
system, the entity conducting the independent study shall
provide for the following:
(1) Assessment of implications for joint officer
education, development, and management that would
result from proposed joint organizational operational
concepts (such as standing joint task forces) and from
emerging officer management and personnel reforms (such
as longer careers and more stabilization), that are
under consideration by the Secretary of Defense.
(2) Assessment of the effectiveness of the current
joint officer management system to develop and use
joint specialty qualified officers in meeting both
current and future requirements for joint specialty
officers.
(3) Recommendations, based on empirical and other
data, to improve the effectiveness of the joint officer
management system, especially with regard to the
following:
(A) The proper mix and sequencing of
education assignments and experience
assignments (to include, with respect to both
types of assignments, consideration of the type
and quality, and the length, of such
assignments) to qualify an officer as a joint
specialty officer, as well as the implications
of adopting a variable joint duty tour length
and the advisability and implications of a
system of qualifying officers as joint
specialty officers that uses multiple shorter
qualification tracks to selection as a joint
specialty officer than are now codified.
(B) The system of using joint specialty
officers, including the continued utility of
such measures as--
(i) the required fill of positions
on the joint duty assignment list, as
specified in paragraphs (1) and (4) of
section 661(d) of title 10, United
States Code;
(ii) the fill by such officers of a
required number of critical billets, as
prescribed by section 661(d)(2) of such
title;
(iii) the mandated fill by general
and flag officers of a minimum number
of critical billets, as prescribed by
section 661(d)(3) of such title; and
(iv) current promotion policy
objectives for officers with the joint
specialty, officers serving on the
Joint Staff, and officers serving in
joint duty assignment list positions,
as prescribed by section 662 of such
title.
(C) Changes in policy and law required to
provide officers the required joint specialty
qualification before promotion to general or
flag officer grade.
(D) A determination of the number of
reserve component officers who would be
qualified for designation as a joint specialty
officer by reason of experience or education if
the standards of existing law, including waiver
authorities, were applied to them, and
recommendations for a process for qualifying
and employing future reserve component officers
as joint specialty officers.
(c) Matters To Be Included With Respect to Joint
Professional Military Education.--With respect to the joint
professional military education system, the entity conducting
the independent study shall provide for the following:
(1) The number of officers who under the current
system (A) qualified as joint specialty officers by
attending joint professional military education
programs before their first joint duty assignment, (B)
qualified as joint specialty officers after arriving at
their first joint duty assignment but before completing
that assignment, and (C) qualified as joint specialty
officers without any joint professional military
education.
(2) Recommended initiatives (include changes in
officer personnel management law, if necessary) to
provide incentives and otherwise facilitate attendance
at joint professional military education programs
before an officer's first joint duty assignment.
(3) Recommended goals for attendance at the Joint
Forces Staff College en route to a first joint duty
assignment.
(4) An assessment of the continuing utility of
statutory requirements for use of officers following
joint professional military education, as prescribed by
section 662(d) of title 10, United States Code.
(5) Determination of whether joint professional
military education programs should remain principally
an in-resident, multi-service experience and what role
non-resident or distributive learning can or should
play in future joint professional military education
programs.
(6) Examination of options for the length of and
increased capacity at Joint Forces Staff College, and
whether other in-resident joint professional military
education sources should be opened, and if opened, how
they might be properly accredited and overseen to
provide instruction at the level of the program
designated as ``joint professional military
education''.
(d) Chairman of Joint Chiefs of Staff.--With respect to the
roles of the Secretary of Defense and the Chairman of the Joint
Chiefs of Staff, the entity conducting the independent study
shall--
(1) provide for an evaluation of the current roles
of the Secretary of Defense, the Chairman of the Joint
Chiefs of Staff, and joint staff in law, policy, and
implementation with regard to establishing and
maintaining oversight of joint officer management,
career guidelines, and joint professional military
education; and
(2) make recommendations to improve and strengthen
those roles.
(e) Requirements for Study Entity.--In providing for the
independent study required by subsection (a), the Secretary of
Defense shall ensure that the entity conducting the study--
(1) is not a Department of Defense organization;
and
(2) shall, at a minimum, involve in the study, in
an integral way, the following persons:
(A) The Chairman of the Joint Chiefs of
Staff and available former Chairmen of the
Joint Chiefs of Staff.
(B) Members and former members of the Joint
Staff, the Armed Forces, the Congress, and
congressional staff who are or who have been
significantly involved in the development,
implementation, or modification of joint
officer management and joint professional
military education.
(C) Experts in joint officer management and
education from civilian academic and research
centers.

SEC. 527. PROFESSIONAL DEVELOPMENT EDUCATION.

(a) Executive Agent for Funding.--(1) Effective beginning
with fiscal year 2003, the Secretary of Defense shall be the
executive agent for funding professional development education
operations of all components of the National Defense
University, including the Joint Forces Staff College. The
Secretary may not delegate the Secretary's functions and
responsibilities under the preceding sentence to the Secretary
of a military department.
(2) Nothing in this subsection affects policies in effect
on the date of the enactment of this Act with respect to--
(A) the reporting of the President of the National
Defense University to the Chairman of the Joint Chiefs
of Staff; or
(B) provision of logistical and base operations
support for components of the National Defense
University by the military departments.
(b) Preparation of Budget Requests.--Section 2162(b) of
title 10, United States Code, is amended--
(1) by redesignating paragraph (2) as paragraph
(3); and
(2) by inserting after paragraph (1) the following
new paragraph:
``(2) As executive agent for funding professional
development education at the National Defense University,
including the Joint Forces Staff College, the Secretary of
Defense, with the advice of the Chairman of the Joint Chiefs of
Staff, shall prepare the annual budget for professional
development education operations at the National Defense
University and set forth that request as a separate budget
request in the materials submitted to Congress in support of
the budget request for the Department of Defense. Nothing in
the preceding sentence affects policies in effect on the date
of the enactment of this paragraph with respect to budgeting
for the funding of logistical and base operations support for
components of the National Defense University through the
military departments.''.
(c) Funding Source.--(1) Section 2165 of title 10, United
States Code, is amended by adding at the end the following new
subsection:
``(d) Source of Funds for Professional Development
Education Operations.--Funding for the professional development
education operations of the National Defense University shall
be provided from funds made available to the Secretary of
Defense from the annual appropriation `Operation and
Maintenance, Defense-wide'.''.
(2) Subsection (d) of section 2165 of title 10, United
States Code, as added by paragraph (1), shall become effective
beginning with fiscal year 2003.

SEC. 528. AUTHORITY FOR NATIONAL DEFENSE UNIVERSITY TO ENROLL CERTAIN
PRIVATE SECTOR CIVILIANS.

(a) In General.--(1) Chapter 108 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2167. National Defense University: admission of private sector
civilians to professional military education
program

``(a) Authority for Admission.--The Secretary of Defense
may permit eligible private sector employees who work in
organizations relevant to national security to receive
instruction at the National Defense University in accordance
with this section. No more than the equivalent of 10 full-time
student positions may be filled at any one time by private
sector employees enrolled under this section. Upon successful
completion of the course of instruction in which enrolled, any
such private sector employee may be awarded an appropriate
diploma or degree under section 2165 of this title.
``(b) Eligible Private Sector Employees.--For purposes of
this section, an eligible private sector employee is an
individual employed by a private firm that is engaged in
providing to the Department of Defense or other Government
departments or agencies significant and substantial defense-
related systems, products, or services or whose work product is
relevant to national security policy or strategy. A private
sector employee admitted for instruction at the National
Defense University remains eligible for such instruction only
so long as that person remains employed by the same firm.
``(c) Annual Certification by Secretary of Defense.--
Private sector employees may receive instruction at the
National Defense University during any academic year only if,
before the start of that academic year, the Secretary of
Defense determines, and certifies to the Committee on Armed
Services of the Senate and the Committee on Armed Services of
the House of Representatives, that providing instruction to
private sector employees under this section during that year
will further national security interests of the United States.
``(d) Program Requirements.--The Secretary of Defense shall
ensure that--
``(1) the curriculum for the professional military
education program in which private sector employees may
be enrolled under this section is not readily available
through other schools and concentrates on national
security relevant issues; and
``(2) the course offerings at the National Defense
University continue to be determined solely by the
needs of the Department of Defense.
``(e) Tuition.--The President of the National Defense
University shall charge students enrolled under this section a
rate--
``(1) that is at least the rate charged for
employees of the United States outside the Department
of Defense, less infrastructure costs, and
``(2) that considers the value to the school and
course of the private sector student.
``(f) Standards of Conduct.--While receiving instruction at
the National Defense University, students enrolled under this
section, to the extent practicable, are subject to the same
regulations governing academic performance, attendance, norms
of behavior, and enrollment as apply to Government civilian
employees receiving instruction at the university.
``(g) Use of Funds.--Amounts received by the National
Defense University for instruction of students enrolled under
this section shall be retained by the university to defray the
costs of such instruction. The source, and the disposition, of
such funds shall be specifically identified in records of the
university.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``2167. National Defense University: admission of private sector
civilians to professional military education program.''.

(b) Effective Date.--Section 2167 of title 10, United
States Code, as added by subsection (a), shall take effect on
January 1, 2002.

SEC. 529. CONTINUATION OF RESERVE COMPONENT PROFESSIONAL MILITARY
EDUCATION TEST.

(a) Continuation of Concept Validation Test.--During fiscal
year 2002, the Secretary of Defense shall continue the concept
validation test of Reserve component joint professional
military education that was begun in fiscal year 2001 at the
National Defense University.
(b) Pilot Program.--If the Secretary of Defense determines
that the results of the concept validation test referred to in
subsection (a) warrant conducting a pilot program of the
concept that was the subject of the test, the Secretary shall
conduct such a pilot program during fiscal year 2003.
(c) Funding.--The Secretary shall provide funds for the
concept validation test under subsection (a) and for any pilot
program under subsection (b) from funds appropriated to the
Secretary of Defense in addition those appropriated for
operations of the National Defense University.

Subtitle D--Military Education and Training

SEC. 531. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER.

(a) Authority To Confer Associate of Arts Degree.--Chapter
108 of title 10, United States Code, is amended by adding after
section 2167, as added by section 528(a)(1), the following new
section:

``Sec. 2168. Defense Language Institute Foreign Language Center: degree
of Associate of Arts in foreign language

``(a) Subject to subsection (b), the Commandant of the
Defense Language Institute may confer an Associate of Arts
degree in a foreign language upon any graduate of the Foreign
Language Center of the Institute who fulfills the requirements
for that degree.
``(b) A degree may be conferred upon a student under this
section only if the Provost of the Center certifies to the
Commandant that the student has satisfied all the requirements
prescribed for the degree.
``(c) The authority provided by subsection (a) shall be
exercised under regulations prescribed by the Secretary of
Defense.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding after the item
relating to section 2167, as added by section 528(a)(2), the
following new item:

``2168. Defense Language Institute Foreign Language Center: degree of
Associate of Arts in foreign language.''.

SEC. 532. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD DEGREE OF
MASTER OF STRATEGIC STUDIES.

(a) Marine Corps War College Degree.--Section 7102 of title
10, United States Code, is amended--
(1) by redesignating subsection (b) as subsection
(c); and
(2) by inserting after subsection (a) the following
new subsection (b):
``(b) Marine Corps War College.--Upon the recommendation of
the Director and faculty of the Marine Corps War College of the
Marine Corps University, the President of the Marine Corps
University may confer the degree of master of strategic studies
upon graduates of the Marine Corps War College who fulfill the
requirements for that degree.''.
(b) Conforming Amendments.--(1) Subsection (a) of such
section is amended by striking ``upon graduates'' and all that
follows and inserting ``upon graduates of the Command and Staff
College who fulfill the requirements for that degree.''.
(2) Subsection (c) of such section, as redesignated by
subsection (a)(1), is amended by striking ``subsection (a)''
and inserting ``subsections (a) and (b)''.
(3)(A) The heading of such section is amended to read as
follows:

``Sec. 7102. Marine Corps University: masters degrees; board of
advisors''.

(B) The item relating to such section in the table of
sections at the beginning of chapter 609 of such title is
amended to read as follows:

``7102. Marine Corps University: masters degrees; board of advisors.''.

(c) Codification of Requirement for Board of Advisors.--(1)
Section 7102 of title 10, United States Code, as amended by
subsections (a) and (b), is further amended by adding at the
end the following new subsection:
``(d) Board of Advisors.--The Secretary of the Navy shall
establish a board of advisors for the Marine Corps University.
The Secretary shall ensure that the board is established so as
to meet all requirements of the appropriate regional
accrediting association.''.
(2) Section 912 of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 7102 note)
is repealed.
(d) Effective Date.--The authority to confer the degree of
master of strategic studies under section 7102(b) of title 10,
United States Code (as added by subsection (a)) may not be
exercised until the Secretary of Education determines, and
certifies to the President of the Marine Corps University, that
the requirements established by the Marine Corps War College of
the Marine Corps University for that degree are in accordance
with generally applicable requirements for a degree of master
of arts. Upon receipt of such a certification, the President of
the University shall promptly transmit a copy of the
certification to the Committee on Armed Services of the Senate
and Committee on Armed Services of the House of
Representatives.

SEC. 533. FOREIGN STUDENTS ATTENDING THE SERVICE ACADEMIES.

(a) United States Military Academy.--(1) Subsection (a)(1)
of section 4344 of title 10, United States Code, is amended by
striking ``not more than 40 persons'' and inserting ``not more
than 60 persons''.
(2) Subsection (b) of such section is amended--
(A) in paragraph (2), by striking ``unless a
written waiver of reimbursement is granted by the
Secretary of Defense'' in the first sentence; and
(B) by striking paragraph (3) and inserting the
following:
``(3) The Secretary of Defense may waive, in whole or in
part, the requirement for reimbursement of the cost of
instruction for a cadet under paragraph (2). In the case of a
partial waiver, the Secretary shall establish the amount
waived.''.
(3) The amendments made by paragraph (2) shall not apply
with respect to any person who entered the United States
Military Academy to receive instruction under section 4344 of
title 10, United States Code, before the date of the enactment
of this Act.
(b) United States Naval Academy.--(1) Subsection (a)(1) of
section 6957 of such title is amended by striking ``not more
than 40 persons'' and inserting ``not more than 60 persons''.
(2) Subsection (b) of such section is amended--
(A) in paragraph (2), by striking ``unless a
written waiver of reimbursement is granted by the
Secretary of Defense'' in the first sentence; and
(B) by striking paragraph (3) and inserting the
following:
``(3) The Secretary of Defense may waive, in whole or in
part, the requirement for reimbursement of the cost of
instruction for a midshipman under paragraph (2). In the case
of a partial waiver, the Secretary shall establish the amount
waived.''.
(3) The amendments made by paragraph (2) shall not apply
with respect to any person who entered the United States Naval
Academy to receive instruction under section 6957 of title 10,
United States Code, before the date of the enactment of this
Act.
(c) United States Air Force Academy.--(1) Subsection (a)(1)
of section 9344 of such title is amended by striking ``not more
than 40 persons'' and inserting ``not more than 60 persons''.
(2) Subsection (b) of such section is amended--
(A) in paragraph (2), by striking ``unless a
written waiver of reimbursement is granted by the
Secretary of Defense'' in the first sentence; and
(B) by striking paragraph (3) and inserting the
following:
``(3) The Secretary of Defense may waive, in whole or in
part, the requirement for reimbursement of the cost of
instruction for a cadet under paragraph (2). In the case of a
partial waiver, the Secretary shall establish the amount
waived.''.
(3) The amendments made by paragraph (2) shall not apply
with respect to any person who entered the United States Air
Force Academy to receive instruction under section 9344 of
title 10, United States Code, before the date of the enactment
of this Act.
(d) Effective Date.--The amendments made by this section
shall not apply with respect to any academic year that began
before the date of the enactment of this Act.

SEC. 534. INCREASE IN MAXIMUM AGE FOR APPOINTMENT AS A CADET OR
MIDSHIPMAN IN SENIOR RESERVE OFFICERS' TRAINING
CORPS SCHOLARSHIP PROGRAMS.

(a) General ROTC Scholarship Program.--Section 2107(a) of
title 10, United States Code, is amended--
(1) by striking ``27 years of age on June 30'' and
inserting ``31 years of age on December 31''; and
(2) by striking ``, except that'' and all that
follows through ``on such date'' the second place it
appears.
(b) Army Reserve and Army National Guard ROTC Scholarship
Program.--Section 2107a(a)(1) of such title is amended--
(1) by striking ``27 years of age on June 30'' and
inserting ``31 years of age on December 31''; and
(2) by striking ``, except that'' and all that
follows through ``on such date'' the second place it
appears.

SEC. 535. PARTICIPATION OF REGULAR ENLISTED MEMBERS OF THE ARMED FORCES
IN SENIOR RESERVE OFFICERS' TRAINING CORPS PROGRAM.

(a) Eligibility.--Section 2104(b)(3) of title 10, United
States Code, is amended by striking ``a reserve component of''.
(b) Pay Rate While on Field Training or Practice Cruise.--
Section 209(c) of title 37, United States Code, is amended by
inserting before the period at the end the following: ``,
except that the rate for a cadet or midshipmen who is a member
of the regular component of an armed force shall be the rate of
basic pay applicable to the member under section 203 of this
title''.

SEC. 536. AUTHORITY TO MODIFY THE SERVICE OBLIGATION OF CERTAIN ROTC
CADETS IN MILITARY JUNIOR COLLEGES RECEIVING
FINANCIAL ASSISTANCE.

(a) Authority To Modify Agreements.--Subsection (b) of
section 2107a of title 10, United States Code, is amended--
(1) by inserting ``(1)'' after ``(b)'';
(2) by redesignating paragraphs (1), (2), (3), (4),
(5), and (6) as subparagraphs (A), (B), (C), (D), (E),
and (F), respectively;
(3) by designating the sentence following
subparagraph (F), as so redesignated, as paragraph (2);
and
(4) by adding at the end the following new
paragraph:
``(3) In the case of a cadet under this section at a
military junior college, the Secretary may, at any time and
with the consent of the cadet concerned, modify an agreement
described in paragraph (1)(F) submitted by the cadet to reduce
or eliminate the troop program unit service obligation
specified in the agreement and to establish, in lieu of that
obligation, an active duty service obligation. Such a
modification may be made only if the Secretary determines that
it is in the best interests of the United States to do so.''.
(b) Retroactive Application.--The authority of the
Secretary of Defense under paragraph (3) of section 2107a(b) of
title 10, United States Code, as added by subsection (a), may
be exercised with regard to any agreement described in
paragraph (1)(F) of such section (including agreements related
to participation in the Advanced Course of the Army Reserve
Officers' Training Corps at a military college or civilian
institution) that was entered into during the period beginning
on January 1, 1991, and ending on July 12, 2000 (in addition to
any agreement described in that paragraph that is entered into
on or after the date of the enactment of this Act).
(c) Technical Amendment.--Subsection (h) of such section is
amended by striking ``military college'' in the second sentence
and inserting ``military junior college''.

SEC. 537. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE OFFICERS'
TRAINING CORPS UNITS.

Section 2031(a)(1) of title 10, United States Code, is
amended by striking the second sentence.

SEC. 538. MODIFICATION OF NURSE OFFICER CANDIDATE ACCESSION PROGRAM
RESTRICTION ON STUDENTS ATTENDING EDUCATIONAL
INSTITUTIONS WITH SENIOR RESERVE OFFICERS' TRAINING
PROGRAMS.

Section 2130a of title 10, United States Code, is amended--
(1) in subsection (a)(2), by striking ``that does
not have a Senior Reserve Officers' Training Program
established under section 2102 of this title''; and
(2) in subsection (b)(1), by inserting before the
semicolon at the end ``or that has a Senior Reserve
Officers' Training Program for which the student is
ineligible''.

SEC. 539. RESERVE HEALTH PROFESSIONALS STIPEND PROGRAM EXPANSION.

(a) Purpose of Program.--Subsection (a) of section 16201 of
title 10, United States Code, is amended--
(1) by striking ``specialties critically needed in
wartime'';
(2) by striking ``training in such specialties''
and inserting ``training that leads to a degree in
medicine or dentistry or training in a health
professions specialty that is critically needed in
wartime''; and
(3) by striking ``training in certain health care
specialties'' and inserting ``health care education and
training''.
(b) Medical and Dental Student Stipend.--Such section is
further amended--
(1) by redesignating subsections (b), (c), (d), and
(e) as subsections (c), (d), (e), and (f),
respectively; and
(2) by inserting after subsection (a) the following
new subsection (b):
``(b) Medical and Dental School Students.--(1) Under the
stipend program under this chapter, the Secretary of the
military department concerned may enter into an agreement with
a person who--
``(A) is eligible to be appointed as an officer in
a reserve component;
``(B) is enrolled or has been accepted for
enrollment in an institution in a course of study that
results in a degree in medicine or dentistry;
``(C) signs an agreement that, unless sooner
separated, the person will--
``(i) complete the educational phase of the
program;
``(ii) accept a reappointment or
redesignation within the person's reserve
component, if tendered, based upon the person's
health profession, following satisfactory
completion of the educational and intern
programs; and
``(iii) participate in a residency program;
and
``(D) if required by regulations prescribed by the
Secretary of Defense, agrees to apply for, if eligible,
and accept, if offered, residency training in a health
profession skill which has been designated by the
Secretary of Defense as a critically needed wartime
skill.
``(2) Under the agreement--
``(A) the Secretary of the military department
concerned shall agree to pay the participant a stipend,
in the amount determined under subsection (f), for the
period or the remainder of the period that the student
is satisfactorily progressing toward a degree in
medicine or dentistry while enrolled in an accredited
medical or dental school;
``(B) the participant shall not be eligible to
receive such stipend before appointment, designation,
or assignment as an officer for service in the Ready
Reserve;
``(C) the participant shall be subject to such
active duty requirements as may be specified in the
agreement and to active duty in time of war or national
emergency as provided by law for members of the Ready
Reserve; and
``(D) the participant shall agree to serve in the
Selected Reserve, upon successful completion of the
program, for the period of service applicable under
paragraph (3).
``(3)(A) Subject to subparagraph (B), the period for which
a participant is required to serve in the Selected Reserve
under the agreement pursuant to paragraph (2)(D) shall be one
year for each period of six months, or part thereof, for which
the participant is provided a stipend pursuant to the
agreement.
``(B) In the case of a participant who enters into a
subsequent agreement under subsection (c) and successfully
completes residency training in a specialty designated by the
Secretary of Defense as a specialty critically needed by the
military department in wartime, the requirement to serve in the
Selected Reserve may be reduced to one year for each year, or
part thereof, for which the stipend was provided while enrolled
in medical or dental school.''.
(c) Wartime Critical Skills.--Subsection (c) of such
section (as redesignated by subsection (b)(1)) is amended--
(1) by inserting ``Wartime'' after ``Critical'' in
the heading; and
(2) by inserting ``or has been appointed as a
medical or dental officer in the Reserve of the armed
force concerned'' in paragraph (1)(B) before the
semicolon at the end.
(d) Service Obligation Requirement.--Paragraph (2)(D) of
subsection (c) of such section (as redesignated by subsection
(b)(1)) and paragraph (2)(D) of subsection (d) of such section
(as so redesignated) are amended by striking ``two years in the
Ready Reserve for each year,'' and inserting ``one year in the
Ready Reserve for each six months,''.
(e) Cross-Reference.--Paragraph (2)(A) of subsection (c) of
such section (as redesignated by subsection (b)(1)) and
paragraph (2)(A) of subsection (d) of such section (as so
redesignated) are amended by striking ``subsection (e)'' and
inserting ``subsection (f)''.

SEC. 540. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF CADETS AT
THE UNITED STATES MILITARY ACADEMY.

(a) Authority.--The second sentence of section 4337 of
title 10, United States Code, is amended by striking ``the same
allowances'' and all that follows through ``captain'' and
inserting ``a monthly housing allowance in the same amount as
the basic allowance for housing allowed to a lieutenant
colonel''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the first day of the first month beginning
on or after the date of the enactment of this Act.

Subtitle E--Recruiting and Accession Programs

SEC. 541. 18-MONTH ENLISTMENT PILOT PROGRAM.

(a) In General.--(1) Chapter 333 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 3264. 18-month enlistment pilot program

``(a) During the pilot program period, the Secretary of the
Army shall carry out a pilot program with the objective of
increasing participation of prior service persons in the
Selected Reserve and providing assistance in building the pool
of participants in the Individual Ready Reserve.
``(b) Under the program, the Secretary may, notwithstanding
section 505(c) of this title, accept persons for original
enlistment in the Army for a term of enlistment consisting of
18 months service on active duty, to be followed by three years
of service in the Selected Reserve and then service in the
Individual Ready Reserve to complete the military service
obligation.
``(c) Under regulations and conditions established by the
Secretary of the Army, a member enlisting under this section
may, at the end of the 18-month period of service on active
duty under that enlistment, be permitted to reenlist for
continued service on active duty in lieu of the service in the
Selected Reserve and the Individual Ready Reserve otherwise
required under the terms of the member's enlistment.
``(d) No more than 10,000 persons may be accepted for
enlistment in the Army through the program under this section.
``(e) A person enlisting in the Army through the program
under this section is eligible for an enlistment bonus under
section 309 of title 37, notwithstanding the enlistment time
period specified in subsection (a) of that section.
``(f) For purposes of this section, the pilot program
period is the period beginning on the date selected by the
Secretary of the Army for the commencement of the pilot
program, which date shall be not later than October 1, 2003,
and ending on December 31, 2007.
``(g) Not later than December 31, 2007, and December 31,
2012, the Secretary of the Army shall submit to the Committee
on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on the
program under this section. In each such report, the Secretary
shall set forth the views of the Secretary on the success of
the program in meeting the objectives stated in subsection (a)
and whether the program should be continued and, if so, whether
it should be modified or expanded.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``3264. 18-month enlistment pilot program.''.

(b) Implementation Report.--The Secretary of the Army shall
submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a
report on the Secretary's plan for implementation of section
3264 of title 10, United States Code, as added by subsection
(a). Such report shall be submitted not later than March 1,
2002.

SEC. 542. IMPROVED BENEFITS UNDER THE ARMY COLLEGE FIRST PROGRAM.

(a) Increased Maximum Period of Delayed Entry.--Section 573
of the National Defense Authorization Act for Fiscal Year 2000
(Public Law 106-65; 113 Stat. 623; 10 U.S.C. 513 note) is
amended--
(1) in subsection (b)--
(A) by striking the matter preceding
paragraph (1) and inserting the following:
``(b) Delayed Entry With Allowance for Higher Education.--
Under the pilot program, the Secretary may--
``(1) exercise the authority under section 513 of
title 10, United States Code--'';
(B) by redesignating paragraphs (1) and (2)
as subparagraphs (A) and (B), respectively, and
realigning those subparagraphs four ems from
the left margin;
(C) at the end of subparagraph (A), as so
redesignated, by inserting ``and'' after the
semicolon; and
(D) in subparagraph (B), as so
redesignated, by striking ``two years after the
date of such enlistment as a Reserve under
paragraph (1)'' and inserting ``the maximum
period of delay determined for that person
under subsection (c)''; and
(2) in subsection (c)--
(A) by striking ``paragraph (2)'' and
inserting ``paragraph (1)(B)'';
(B) by striking ``two-year period'' and
inserting ``30-month period''; and
(C) by striking ``paragraph (1)'' and
inserting ``paragraph (1)(A)''.
(b) Allowance Eligibility and Amount.--(1) Such section is
further amended--
(A) in subsection (b), by striking paragraph (3)
and inserting the following:
``(2) subject to paragraph (2) of subsection (d)
and except as provided in paragraph (3) of that
subsection, pay an allowance to a person accepted for
enlistment under paragraph (1)(A) for each month of the
period during which that person is enrolled in and
pursuing a program described in paragraph (1)(B)''; and
(B) in subsection (d)--
(i) by redesignating paragraph (2) as
paragraph (4);
(ii) by striking paragraph (1) and
inserting the following new paragraphs:
``(1) The monthly allowance paid under subsection (b)(2)
shall be equal to the amount of the subsistence allowance
provided for certain members of the Senior Reserve Officers'
Training Corps with the corresponding number of years of
participation under section 209(a) of title 37, United States
Code.
``(2) An allowance may not be paid to a person under this
section for more than 24 months.
``(3) A member of the Selected Reserve of a reserve
component may be paid an allowance under this section only for
months during which the member performs satisfactorily as a
member of a unit of the reserve component that trains as
prescribed in section 10147(a)(1) of title 10, United States
Code, or section 502(a) of title 32, United States Code.
Satisfactory performance shall be determined under regulations
prescribed by the Secretary.''.
(2) The heading for such subsection is amended by striking
``Amount of''.
(c) Ineligibility for Loan Repayments; Recoupment.--Such
section is further amended--
(1) by redesignating subsections (e), (f), and (g)
as subsections (g), (h), and (i), respectively; and
(2) by inserting after subsection (d) the following
new subsections:
``(e) Ineligibility for Loan Repayments.--A person who has
received an allowance under this section is not eligible for
any benefits under chapter 109 of title 10, United States Code.
``(f) Recoupment of Allowance.--(1) A person who, after
receiving an allowance under this section, fails to complete
the total period of service required of that person in
connection with delayed entry authorized for the person under
section 513 of title 10, United States Code, shall repay the
United States the amount which bears the same ratio to the
total amount of that allowance paid to the person as the
unserved part of the total required period of service bears to
the total period.
``(2) An obligation to repay the United States imposed
under paragraph (1) is for all purposes a debt owed to the
United States.
``(3) A discharge of a person in bankruptcy under title
11, United States Code, that is entered less than five years
after the date on which the person was, or was to be, enlisted
in the regular Army pursuant to the delayed entry authority
under section 513 of title 10, United States Code, does not
discharge that person from a debt arising under paragraph (1).
``(4) The Secretary of the Army may waive, in whole or in
part, a debt arising under paragraph (1) in any case for which
the Secretary determines that recovery would be against equity
and good conscience or would be contrary to the best interests
of the United States.''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to persons who, on or after the date
of the enactment of this Act, are enlisted as described in
subsection (a) of section 513 of title 10, United States Code,
with delayed entry authorized under that section.

SEC. 543. CORRECTION AND EXTENSION OF CERTAIN ARMY RECRUITING PILOT
PROGRAM AUTHORITIES.

(a) Contract Recruiting Initiatives.--Subsection (d)(2) of
section 561 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-130) is amended--
(1) in subparagraphs (A) and (D), by inserting
``and Army Reserve'' after ``Regular Army''; and
(2) in subparagraph (B), by striking ``and chain of
command''.
(b) Extension of Authority.--Subsection (e) of such section
is amended by striking ``December 31, 2005'' and inserting
``September 30, 2007''.
(c) Extension of Time for Reports.--Subsection (g) of such
section is amended by striking ``February 1, 2006'' and
inserting ``February 1, 2008''.

SEC. 544. MILITARY RECRUITER ACCESS TO SECONDARY SCHOOL STUDENTS.

(a) Access to Secondary Schools.--Paragraph (1) of section
503(c) of title 10, United States Code, is amended to read as
follows:
``(c) Access to Secondary Schools.--(1)(A) Each local
educational agency receiving assistance under the Elementary
and Secondary Education Act of 1965--
``(i) shall provide to military recruiters the same
access to secondary school students as is provided
generally to postsecondary educational institutions or
to prospective employers of those students; and
``(ii) shall, upon a request made by military
recruiters for military recruiting purposes, provide
access to secondary school student names, addresses,
and telephone listings, notwithstanding section
444(a)(5)(B) of the General Education Provisions Act
(20 U.S.C. 1232g(a)(5)(B)).
``(B) A local educational agency may not release a
student's name, address, and telephone listing under
subparagraph (A)(ii) without the prior written consent of a
parent of the student if the student, or a parent of the
student, has submitted a request to the local educational
agency that the student's information not be released for a
purpose covered by that subparagraph without prior written
parental consent. Each local education agency shall notify
parents of the rights provided under the preceding sentence.''.
(b) Effective Date.--The amendment made by subsections (a)
shall take effect on July 1, 2002, immediately after the
amendment to section 503(c) of title 10, United States Code,
made, effective that date, by section 563(a) of the Floyd D.
Spence National Defense Authorization Act for Fiscal Year 2001
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
131).
(c) Notification.--The Secretary of Education shall provide
to local educational agencies notice of the provisions of
subsection (c) of section 503 of title 10, United States Code,
as in effect upon the amendments made by subsection (a). Such
notice shall be provided not later than 120 days after the date
of the enactment of this Act and shall be provided in
consultation with the Secretary of Defense.

SEC. 545. PERMANENT AUTHORITY FOR USE OF MILITARY RECRUITING FUNDS FOR
CERTAIN EXPENSES AT DEPARTMENT OF DEFENSE
RECRUITING FUNCTIONS.

(a) Repeal of Termination Provision.--Section 520c of title
10, United States Code, is amended by striking subsection (c).
(b) Technical Amendments.--Subsection (a) of such section
is amended--
(1) in paragraph (4), by striking ``recruiting
events'' and inserting ``recruiting functions''; and
(2) in paragraph (5), by striking ``recruiting
efforts'' the first place it appears and inserting
``recruiting functions''.

SEC. 546. REPORT ON HEALTH AND DISABILITY BENEFITS FOR PRE-ACCESSION
TRAINING AND EDUCATION PROGRAMS.

(a) Study.--The Secretary of Defense shall conduct a review
of the health and disability benefit programs available to
recruits and officer candidates engaged in training, education,
or other types of programs while not yet on active duty and to
cadets and midshipmen attending the service academies. The
review shall be conducted with the participation of the
Secretaries of the military departments.
(b) Report.--Not later than March 1, 2002, the Secretary
shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of
Representatives a report on the findings of the review. The
report shall include the following with respect to persons
described in subsection (a):
(1) A statement of the process and detailed
procedures followed by each of the Armed Forces under
the jurisdiction of the Secretary of a military
department to provide health care and disability
benefits to all such persons injured in training,
education, or other types of programs conducted by the
Secretary of a military department.
(2) Information on the total number of cases of
such persons requiring health care and disability
benefits and the total number of cases and average
value of health care and disability benefits provided
under the authority for each source of benefits
available to those persons.
(3) A discussion of the issues regarding health and
disability benefits for such persons that are
encountered by the Secretary during the review, to
include discussions with individuals who have received
those benefits.
(4) A statement of the processes and detailed
procedures followed by each of the Armed Forces under
the jurisdiction of the Secretary of a military
department to provide recruits and officer candidates
with succinct information on the eligibility
requirements (including information on when they become
eligible) for health care benefits under the Defense
health care program, and the nature and availability of
the benefits under the program.
(5) A discussion of the necessity for legislative
changes and specific legislative proposals needed to
improve the benefits provided those persons.
(6) An analysis of health and disability benefits
under laws administered by the Department of Veterans
Affairs and the Department of Labor for which those
persons become eligible upon being injured in training
or education and a discussion of how those benefits
compare to the benefits those persons would received if
retired for physical disability by the Department of
Defense.

Subtitle F--Decorations, Awards, and Posthumous Commissions

SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO HUMBERT R.
VERSACE, JON E. SWANSON, AND BEN L. SALOMON FOR
VALOR.

(a) Waiver of Time Limitations.--Notwithstanding the time
limitations specified in section 3744 of title 10, United
States Code, or any other time limitation with respect to the
awarding of certain medals to persons who served in the
military service, the President may award the Medal of Honor
under section 3741 of that title to any of the persons named in
subsections (b), (c), and (d) for the acts of valor referred to
in those respective subsections.
(b) Humbert R. Versace.--Subsection (a) applies with
respect to Humbert R. Versace, for conspicuous acts of
gallantry and intrepidity at the risk of his life and beyond
the call of duty between October 29, 1963, and September 26,
1965, while interned as a prisoner of war by the Vietnamese
Communist National Liberation Front (Viet Cong) in the Republic
of Vietnam.
(c) Jon E. Swanson.--Subsection (a) applies with respect to
Jon E. Swanson, for conspicuous acts of gallantry and
intrepidity at the risk of his life and beyond the call of duty
on February 26, 1971, while piloting a Scout helicopter on a
close-support reconnaissance mission in support of the Army of
the Republic of Vietnam Task Force 333 in the Kingdom of
Cambodia.
(d) Ben L. Salomon.--Subsection (a) applies with respect to
Ben L. Salomon, for conspicuous acts of gallantry and
intrepidity at the risk of his life and beyond the call of duty
on July 7, 1944, while defending the soldiers under his care as
the Surgeon, 2d Battalion, 105th Infantry Regiment, 27th
Infantry Division against an overwhelming enemy force at
Saipan, Marianas Islands.

SEC. 552. REVIEW REGARDING AWARD OF MEDAL OF HONOR TO CERTAIN JEWISH
AMERICAN AND HISPANIC AMERICAN WAR VETERANS.

(a) Review Required.--The Secretary of each military
department shall review the service records of each Jewish
American war veteran or Hispanic American war veteran described
in subsection (b) to determine whether that veteran should be
awarded the Medal of Honor.
(b) Covered Jewish American War Veterans and Hispanic
American War Veterans.--The Jewish American war veterans and
Hispanic American war veterans whose service records are to be
reviewed under subsection (a) are the following:
(1) Any Jewish American war veteran or Hispanic
American war veteran who was awarded the Distinguished
Service Cross, the Navy Cross, or the Air Force Cross
before the date of the enactment of this Act.
(2) Any other Jewish American war veteran or
Hispanic American war veteran whose name is submitted
to the Secretary concerned for such purpose before the
end of the one-year period beginning on the date of the
enactment of this Act.
(c) Consultations.--In carrying out the review under
subsection (a), the Secretary of each military department shall
consult with the Jewish War Veterans of the United States of
America and with such other veterans service organizations as
the Secretary considers appropriate.
(d) Recommendation Based on Review.--If the Secretary
concerned determines, based upon the review under subsection
(a) of the service records of any Jewish American war veteran
or Hispanic American war veteran, that the award of the Medal
of Honor to that veteran is warranted, the Secretary shall
submit to the President a recommendation that the President
award the Medal of Honor to that veteran.
(e) Authority To Award Medal of Honor.--A Medal of Honor
may be awarded to a Jewish American war veteran or Hispanic
American war veteran in accordance with a recommendation of the
Secretary concerned under subsection (d).
(f) Waiver of Time Limitations.--An award of the Medal of
Honor may be made under subsection (e) without regard to--
(1) section 3744, 6248, or 8744 of title 10, United
States Code, as applicable; and
(2) any regulation or other administrative
restriction on--
(A) the time for awarding the Medal of
Honor; or
(B) the awarding of the Medal of Honor for
service for which a Distinguished Service
Cross, Navy Cross, or Air Force Cross has been
awarded.
(g) Definition.--For purposes of this section, the term
``Jewish American war veteran'' means any person who served in
the Armed Forces during World War II or a later period of war
and who identified himself or herself as Jewish on his or her
military personnel records.

SEC. 553. AUTHORITY TO ISSUE DUPLICATE MEDALS OF HONOR AND TO REPLACE
STOLEN MILITARY DECORATIONS.

(a) Army.--(1)(A) Chapter 357 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 3754. Medal of honor: duplicate medal

``A person awarded a medal of honor shall, upon written
application of that person, be issued, without charge, one
duplicate medal of honor with ribbons and appurtenances. Such
duplicate medal of honor shall be marked, in such manner as the
Secretary of the Army may determine, as a duplicate or for
display purposes only.''.
(B) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``3754. Medal of honor: duplicate medal.''.

(2) Section 3747 of such title is amended by striking
``lost'' and inserting ``stolen, lost,''.
(b) Navy and Marine Corps.--(1)(A) Chapter 567 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 6256. Medal of honor: duplicate medal

``A person awarded a medal of honor shall, upon written
application of that person, be issued, without charge, one
duplicate medal of honor with ribbons and appurtenances. Such
duplicate medal of honor shall be marked, in such manner as the
Secretary of the Navy may determine, as a duplicate or for
display purposes only.''.
(B) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``6256. Medal of honor: duplicate medal.''.

(2) Section 6253 of such title is amended by striking
``lost'' and inserting ``stolen, lost,''.
(c) Air Force.--(1)(A) Chapter 857 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 8754. Medal of honor: duplicate medal

``A person awarded a medal of honor shall, upon written
application of that person, be issued, without charge, one
duplicate medal of honor with ribbons and appurtenances. Such
duplicate medal of honor shall be marked, in such manner as the
Secretary of the Air Force may determine, as a duplicate or for
display purposes only.''.
(B) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``8754. Medal of honor: duplicate medal.''.

(2) Section 8747 of such title is amended by striking
``lost'' and inserting ``stolen, lost,''.
(d) Coast Guard.--(1)(A) Chapter 13 of title 14, United
States Code, is amended by inserting after section 503 the
following new section:

``Sec. 504. Medal of honor: duplicate medal

``A person awarded a medal of honor shall, upon written
application of that person, be issued, without charge, one
duplicate medal of honor with ribbons and appurtenances. Such
duplicate medal of honor shall be marked, in such manner as the
Secretary may determine, as a duplicate or for display purposes
only.''.
(B) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 503
the following new item:

``504. Medal of honor: duplicate medal.''.

(2) Section 501 of such title is amended by inserting
``stolen,'' before ``lost,''.
(e) Definition of Medal of Honor for Purposes of Federal
Unauthorized-Use Crime.--Section 704(b)(2)(B) of title 18,
United States Code, is amended to read as follows:
``(B) As used in this subsection, `Congressional
Medal of Honor' means--
``(i) a medal of honor awarded under
section 3741, 6241, or 8741 of title 10 or
section 491 of title 14;
``(ii) a duplicate medal of honor issued
under section 3754, 6256, or 8754 of title 10
or section 504 of title 14; or
``(iii) a replacement of a medal of honor
provided under section 3747, 6253, or 8747 of
title 10 or section 501 of title 14.''.

SEC. 554. RETROACTIVE MEDAL OF HONOR SPECIAL PENSION.

(a) Entitlement.--Notwithstanding any other provision of
law, Robert R. Ingram of Jacksonville, Florida, who was awarded
the Medal of Honor pursuant to Public Law 105-103 (111 Stat.
2218), shall be entitled to the special pension provided for
under section 1562 of title 38, United States Code (and
antecedent provisions of law), for months that begin after
March 1966.
(b) Amount.--The amount of special pension payable under
subsection (a) for a month beginning before the date of the
enactment of this Act shall be the amount of special pension
provided for by law for that month for persons entered and
recorded in the Army, Navy, Air Force, and Coast Guard Medal of
Honor Roll (or antecedent Medal of Honor Roll required by law).

SEC. 555. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS
TO CERTAIN PERSONS.

(a) Waiver.--Any limitation established by law or policy
for the time within which a recommendation for the award of a
military decoration or award must be submitted shall not apply
to awards of decorations described in this section, the award
of each such decoration having been determined by the Secretary
concerned to be warranted in accordance with section 1130 of
title 10, United States Code.
(b) Silver Star.--Subsection (a) applies to the award of
the Silver Star to Wayne T. Alderson, of Glassport,
Pennsylvania, for gallantry in action from March 15 to March
18, 1945, while serving as a member of the Army.
(c) Distinguished Flying Cross.--Subsection (a) applies to
the award of the Distinguished Flying Cross for service during
World War II (including multiple awards to the same individual)
in the case of each individual concerning whom the Secretary of
the Navy (or an officer of the Navy acting on behalf of the
Secretary) submitted to the Committee on Armed Services of the
House of Representatives and the Committee on Armed Services of
the Senate, during the period beginning on October 30, 2000,
and ending on the day before the date of the enactment of this
Act, a notice as provided in section 1130(b) of title 10,
United States Code, that the award of the Distinguished Flying
Cross to that individual is warranted and that a waiver of time
restrictions prescribed by law for recommendation for such
award is recommended.

SEC. 556. SENSE OF CONGRESS ON ISSUANCE OF CERTAIN MEDALS.

It is the sense of Congress that the Secretary of Defense
should consider authorizing--
(1) the issuance of a campaign medal, to be known
as the Korea Defense Service Medal, to each person who
while a member of the Armed Forces served in the
Republic of Korea, or the waters adjacent thereto,
during the period beginning on July 28, 1954, and
ending on such date thereafter as the Secretary
considers appropriate;
(2) the issuance of a campaign medal, to be known
as the Cold War Service Medal, to each person who while
a member of the Armed Forces served satisfactorily on
active duty during the Cold War; and
(3) the award of the Vietnam Service Medal to any
member or former member of the Armed Forces who was
awarded the Armed Forces Expeditionary Medal for
participation in military operations designated as
Operation Frequent Wind arising from the evacuation of
Vietnam on April 29 and 30, 1975.

SEC. 557. SENSE OF CONGRESS ON DEVELOPMENT OF A MORE COMPREHENSIVE,
UNIFORM POLICY FOR THE AWARD OF DECORATIONS TO
MILITARY AND CIVILIAN PERSONNEL OF THE DEPARTMENT
OF DEFENSE.

(a) Findings.--Congress makes the following findings:
(1) The role and importance of civilian nationals
of the United States as Federal employees and
contractors in support of operations of the Armed
Forces worldwide has continued to expand.
(2) The expanded role performed by those civilians,
both in the United States and overseas, has greatly
increased the risk to those civilians of injury and
death from hostile actions taken against United States
Armed Forces, as demonstrated by the terrorist attack
on the Pentagon on September 11, 2001, in which scores
of Department of Defense civilian and contractor
personnel were killed or wounded.
(3) On September 20, 2001, the Deputy Secretary of
Defense approved the creation of a new award, a medal
for the defense of freedom, to be awarded to civilians
employed by the Department of Defense who are killed or
wounded as a result of hostile action and at the same
time directed that a comprehensive review be conducted
to develop a more uniform approach to the award of
decorations to military and civilian personnel of the
Department of Defense.
(b) Commendation of Creation of New Award.--Congress
commends the decision announced by the Deputy Secretary of
Defense on September 20, 2001, to approve the creation of a new
award, a medal for the defense of freedom, to be awarded to
civilians employed by the Department of Defense who are killed
or wounded as a result of hostile action.
(c) Sense of Congress.--It is the sense of Congress that
the Secretary of Defense should act expeditiously to develop a
more comprehensive, uniform policy for the award of decorations
to military and civilian personnel of the Department of
Defense.

SEC. 558. POSTHUMOUS ARMY COMMISSION IN THE GRADE OF CAPTAIN IN THE
CHAPLAINS CORPS TO ELLA E. GIBSON FOR SERVICE AS
CHAPLAIN OF THE FIRST WISCONSIN HEAVY ARTILLERY
REGIMENT DURING THE CIVIL WAR.

The President is authorized and requested to posthumously
appoint Ella E. Gibson to the grade of captain in the Chaplains
Corps of the Army, the commission to issue as of the date of
her appointment as chaplain to the First Wisconsin Heavy
Artillery regiment during the Civil War and to be considered to
have been in effect during the time during which she faithfully
performed the services of a chaplain to that regiment and for
which Congress by law (Private Resolution 31 of the 40th
Congress, approved March 3, 1869) previously provided for her
to be paid the full pay and emoluments of a chaplain in the
United States Army as if she had been regularly commissioned
and mustered into service.

Subtitle G--Funeral Honors Duty

SEC. 561. PARTICIPATION OF MILITARY RETIREES IN FUNERAL HONORS DETAILS.

(a) Authority.--Subsection (b)(2) of section 1491 of title
10, United States Code, is amended--
(1) in the first sentence, by inserting ``(other
than members in a retired status)'' after ``members of
the armed forces''; and
(2) in the second sentence, by inserting
``(including members in a retired status),'' after
``members of the armed forces''.
(b) Funeral Honors Duty Allowance.--Section 435(a) of title
37, United States Code, is amended--
(1) by inserting ``(1)'' after ``(a) Allowance
Authorized.--''; and
(2) by adding at the end the following new
paragraph:
``(2) The Secretary concerned may also authorize payment of
that allowance to a member of the armed forces in a retired
status for any day on which the member serves in a funeral
honors detail under section 1491 of title 10, if the time
required for service in such detail (including time for
preparation) is not less than two hours. The amount of an
allowance paid to a member under this paragraph shall be in
addition to any other compensation to which the member may be
entitled under this title or title 10 or 38.''.

SEC. 562. FUNERAL HONORS DUTY PERFORMED BY RESERVE AND GUARD MEMBERS TO
BE TREATED AS INACTIVE-DUTY TRAINING FOR CERTAIN
PURPOSES.

(a) Reserve Members.--Section 12503(a) of title 10, United
States Code, is amended by adding at the end the following new
sentence: ``Performance of funeral honors duty by a Reserve not
on active duty shall be treated as inactive-duty training
(including with respect to travel to and from such duty) for
purposes of any provision of law other than sections 206 and
435 of title 37.''.
(b) National Guard Members.--Section 115(a) of title 32,
United States Code, is amended by adding at the end the
following new sentence: ``Performance of funeral honors duty by
such a member not on active duty or full-time National Guard
duty shall be treated as inactive-duty training (including with
respect to travel to and from such duty) for purposes of any
provision of law other than sections 206 and 435 of title
37.''.
(c) Effective Date.--The amendments made by this section
shall apply to funeral honors duty performed on or after
October 30, 2000.

SEC. 563. USE OF MILITARY LEAVE FOR FUNERAL HONORS DUTY BY RESERVE
MEMBERS AND NATIONAL GUARDSMEN.

Section 6323(a)(1) of title 5, United States Code, is
amended by inserting ``funeral honors duty (as described in
section 12503 of title 10 and section 115 of title 32),'' after
``(as defined in section 101 of title 37),''.

SEC. 564. AUTHORITY TO PROVIDE APPROPRIATE ARTICLES OF CLOTHING AS A
CIVILIAN UNIFORM FOR CIVILIANS PARTICIPATING IN
FUNERAL HONOR DETAILS.

Section 1491(d) of title 10, United States Code, is amended
by adding at the end the following new paragraph:
``(3) Articles of clothing for members of a
veterans organization or other organization referred to
in subsection (b)(2) that, as determined by the
Secretary concerned, are appropriate as a civilian
uniform for persons participating in a funeral honors
detail.''.

Subtitle H--Military Spouses and Family Members

SEC. 571. IMPROVED FINANCIAL AND OTHER ASSISTANCE TO MILITARY SPOUSES
FOR JOB TRAINING AND EDUCATION.

(a) Examination of Existing Employment Assistance
Programs.--(1) The Secretary of Defense shall examine existing
Department of Defense and other Federal, State, and
nongovernmental programs with the objective of improving
retention of military personnel by increasing the employability
of military spouses and assisting those spouses in gaining
access to financial and other assistance for job training and
education.
(2) In conducting the examination, the Secretary shall give
priority to facilitating and increasing access of military
spouses to existing Department of Defense, Federal, State, and
nongovernmental sources for the types of financial assistance
set forth in paragraph (3), but shall also specifically assess
whether the Department of Defense should begin a program for
direct financial assistance to military spouses for some or all
of those types of assistance and whether such a program of
direct financial assistance would enhance retention.
(3) In conducting the examination pursuant to paragraph
(1), the Secretary should focus on financial assistance for
military spouses for one or more of the following purposes:
(A) Career-related education.
(B) Certification and license fees for employment-
related purposes.
(C) Apprenticeships and internships.
(D) Technical training.
(E) Training to improve job skills.
(F) Career counseling.
(G) Skills assessment.
(H) Job-search skills.
(I) Job-related transportation.
(J) Child care.
(K) Any additional employment-related purpose
specified by the Secretary for the purposes of the
examination under paragraph (1).
(4) Not later than March 30, 2002, the Secretary of Defense
shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of
Representatives a report on the results of the examination
under paragraph (1).
(b) Review of Department of Defense Policies.--(1) The
Secretary of Defense shall review Department of Defense
policies that affect employment and education opportunities for
military spouses in the Department of Defense in order to
further expand those opportunities. The review shall include
the consideration of providing, to the extent authorized by
law, separate spouse preferences for employment by appropriated
and nonappropriated fund operations.
(2) Not later than March 30, 2002, the Secretary of Defense
shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of
Representatives a report on the results of the review under
paragraph (1).
(c) Spouse Employment Assistance.--Section 1784 of title
10, United States Code, is amended by adding at the end the
following new subsections:
``(d) Space-Available Use of Facilities for Spouse Training
Purposes.--Under regulations prescribed by the Secretary of
Defense, the Secretary of a military department may make
available to a non-Department of Defense entity space in non-
excess facilities controlled by that Secretary for the purpose
of the non-Department of Defense entity providing employment-
related training for military spouses.
``(e) Employment by Other Federal Agencies.--The Secretary
of Defense shall work with the Director of the Office of
Personnel Management and the heads of other Federal departments
and agencies to expand and facilitate the use of existing
Federal programs and resources in support of military spouse
employment.
``(f) Private-Sector Employment.--The Secretary of
Defense--
``(1) shall seek to develop partnerships with firms
in the private sector to enhance employment
opportunities for spouses of members of the armed
forces and to provide for improved job portability for
such spouses, especially in the case of the spouse of a
member of the armed forces accompanying the member to a
new geographical area because of a change of permanent
duty station of the member; and
``(2) shall work with the United States Chamber of
Commerce and other appropriate private-sector entities
to facilitate the formation of such partnerships.
``(g) Employment With DOD Contractors.--The Secretary of
Defense shall examine and seek ways for incorporating hiring
preferences for qualified spouses of members of the armed
forces into contracts between the Department of Defense and
private-sector entities.''.

SEC. 572. PERSONS AUTHORIZED TO BE INCLUDED IN SURVEYS OF MILITARY
FAMILIES REGARDING FEDERAL PROGRAMS.

(a) Extension of Survey Authority.--Subsection (a) of
section 1782 of title 10, United States Code, is amended to
read as follows:
``(a) Authority.--The Secretary of Defense, in order to
determine the effectiveness of Federal programs relating to
military families and the need for new programs, may conduct
surveys of--
``(1) members of the armed forces who are on active
duty, in an active status, or retired;
``(2) family members of such members; and
``(3) survivors of deceased retired members and of
members who died while on active duty.''.
(b) Federal Recordkeeping Requirements.--Subsection (c) of
such section is amended to read as follows:
``(c) Federal Recordkeeping Requirements.--With respect to
a survey authorized under subsection (a) that includes a person
referred to in that subsection who is not an employee of the
United States or is not otherwise considered an employee of the
United States for the purposes of section 3502(3)(A)(i) of
title 44, the person shall be considered as being an employee
of the United States for the purposes of that section.''.

SEC. 573. CLARIFICATION OF TREATMENT OF CLASSIFIED INFORMATION
CONCERNING PERSONS IN A MISSING STATUS.

Section 1506(b)(2) of title 10, United States Code, is
amended--
(1) by inserting ``(A)'' after ``(2)'';
(2) by striking the period at the end and inserting
``of all missing persons from the conflict or period of
war to which the classified information pertains.'';
and
(3) by adding at the end the following new
subparagraph:
``(B) For purposes of subparagraph (A), information shall
be considered to be made reasonably accessible if placed in a
separate and distinct file that is available for review by
persons specified in subparagraph (A) upon the request of any
such person either to review the separate file or to review the
personnel file of the missing person concerned.''.

SEC. 574. TRANSPORTATION TO ANNUAL MEETING OF NEXT-OF-KIN OF PERSONS
UNACCOUNTED FOR FROM CONFLICTS AFTER WORLD WAR II.

(a) Authority for Department of Defense To Provide
Transportation.--Chapter 157 of title 10, United States Code,
is amended by adding at the end the following new section:

``Sec. 2647. Next-of-kin of persons unaccounted for from conflicts
after World War II: transportation to annual
meetings

``The Secretary of Defense may provide transportation for
the next-of-kin of persons who are unaccounted for from the
Korean conflict, the Cold War, Vietnam War era, or the Persian
Gulf War to and from an annual meeting in the United States.
Such transportation shall be provided under such regulations as
the Secretary of Defense may prescribe.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2647. Next-of-kin of persons unaccounted for from conflicts after
World War II: transportation to annual meetings.''.

SEC. 575. AMENDMENTS TO CHARTER OF DEFENSE TASK FORCE ON DOMESTIC
VIOLENCE.

(a) Members Appointed From Private Sector.--Subsection
(h)(1) of section 591 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 639; 10
U.S.C. 1562 note) is amended--
(1) by inserting ``who is a member of the Armed
Forces or civilian officer or employee of the United
States'' after ``Each member of the task force'';
(2) by striking ``, but shall'' and all that
follows and inserting a period; and
(3) by adding at the end the following new
sentence: ``Other members of the task force shall be
appointed in accordance with, and subject to, section
3161 of title 5, United States Code.''.
(b) Extension of Termination Date.--Subsection (j) of such
section is amended by striking ``three years after the date of
the enactment of this Act'' and inserting ``on April 24,
2003''.

Subtitle I--Military Justice and Legal Assistance Matters

SEC. 581. BLOOD ALCOHOL CONTENT LIMIT FOR THE OFFENSE UNDER THE UNIFORM
CODE OF MILITARY JUSTICE OF DRUNKEN OPERATION OF A
VEHICLE, AIRCRAFT, OR VESSEL.

Section 911 of title 10, United States Code (article 111 of
the Uniform Code of Military Justice), is amended--
(1) by inserting ``(a)'' before `` Any person'';
(2) by striking ``0.10 grams'' the first place it
appears and all that follows through ``chemical
analysis'' and inserting ``in excess of the applicable
limit under subsection (b)''; and
(3) by adding at the end the following:
``(b)(1) For purposes of subsection (a), the applicable
limit on the alcohol concentration in a person's blood or
breath is as follows:
``(A) In the case of the operation or control of a
vehicle, aircraft, or vessel in the United States, such
limit is the blood alcohol content limit under the law
of the State in which the conduct occurred, except as
may be provided under paragraph (2) for conduct on a
military installation that is in more than one State
and subject to the maximum blood alcohol content limit
specified in paragraph (3).
``(B) In the case of the operation or control of a
vehicle, aircraft, or vessel outside the United States,
the applicable blood alcohol content limit is the
maximum blood alcohol content limit specified in
paragraph (3) or such lower limit as the Secretary of
Defense may by regulation prescribe.
``(2) In the case of a military installation that is in
more than one State, if those States have different blood
alcohol content limits under their respective State laws, the
Secretary may select one such blood alcohol content limit to
apply uniformly on that installation.
``(3) For purposes of paragraph (1), the maximum blood
alcohol content limit with respect to alcohol concentration in
a person's blood is 0.10 grams of alcohol per 100 milliliters
of blood and with respect to alcohol concentration in a
person's breath is 0.10 grams of alcohol per 210 liters of
breath, as shown by chemical analysis.
``(4) In this subsection:
``(A) The term `blood alcohol content limit' means
the maximum permissible alcohol concentration in a
person's blood or breath for purposes of operation or
control of a vehicle, aircraft, or vessel.
``(B) The term `United States' includes the
District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, and American Samoa and the
term `State' includes each of those jurisdictions.''.

SEC. 582. REQUIREMENT THAT COURTS-MARTIAL CONSIST OF NOT LESS THAN 12
MEMBERS IN CAPITAL CASES.

(a) Classification of General Court-Martial in Capital
Cases.--Section 816(1)(A) of title 10, United States Code
(article 16(1)(A) of the Uniform Code of Military Justice) is
amended by inserting after ``five members'' the following:
``or, in a case in which the accused may be sentenced to a
penalty of death, the number of members determined under
section 825a of this title (article 25a)''.
(b) Number of Members Required.--(1) Chapter 47 of title
10, United States Code (the Uniform Code of Military Justice),
is amended by inserting after section 825 (article 25) the
following new section:

``Sec. 825a. Art. 25a. Number of members in capital cases

``In a case in which the accused may be sentenced to a
penalty of death, the number of members shall be not less than
12, unless 12 members are not reasonably available because of
physical conditions or military exigencies, in which case the
convening authority shall specify a lesser number of members
not less than five, and the court may be assembled and the
trial held with not less than the number of members so
specified. In such a case, the convening authority shall make a
detailed written statement, to be appended to the record,
stating why a greater number of members were not reasonably
available.''.
(2) The table of sections at the beginning of subchapter V
of such chapter is amended by inserting after the item relating
to section 825 (article 25) the following new item:

``825a. 25a. Number of members in capital cases.''.

(c) Absent and Additional Members.--Section 829(b) of such
title (article 29 of the Uniform Code of Military Justice) is
amended--
(1) by inserting ``(1)'' after ``(b)'';
(2) by striking ``five members'' both places it
appears and inserting ``the applicable minimum number
of members''; and
(3) by adding at the end the following new
paragraph:
``(2) In this section, the term `applicable minimum number
of members' means five members or, in a case in which the death
penalty may be adjudged, the number of members determined under
section 825a of this title (article 25a).''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to offenses committed after December
31, 2002.

SEC. 583. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE FOR THE CIVIL
AFFAIRS OF MEMBERS AND FORMER MEMBERS OF THE
UNIFORMED SERVICES AND THEIR DEPENDENTS.

(a) Authority.--Subsection (a) of section 1588 of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
``(5) Legal services voluntarily provided as legal
assistance under section 1044 of this title.''.
(b) Defense of Legal Malpractice.--Subsection (d)(1) of
that section is amended by adding at the end the following new
subparagraph:
``(E) Section 1054 of this title (relating to legal
malpractice), for a person voluntarily providing legal
services accepted under subsection (a)(5), as if the
person were providing the services as an attorney of a
legal staff within the Department of Defense.''.

Subtitle J--Other Matters

SEC. 591. CONGRESSIONAL REVIEW PERIOD FOR CHANGE IN GROUND COMBAT
EXCLUSION POLICY.

Section 542(b) of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 113 note)
is amended--
(1) in paragraph (1)--
(A) by striking ``not less than 90 days'';
and
(B) by adding at the end the following new
sentence: ``Such a change may then be
implemented only after the end of a period of
30 days of continuous session of Congress
(excluding any day on which either House of
Congress is not in session) following the date
on which the report is received.''; and
(2) by adding at the end the following new
paragraph:
``(5) For purposes of this subsection, the continuity of a
session of Congress is broken only by an adjournment of the
Congress sine die.''.

SEC. 592. PER DIEM ALLOWANCE FOR LENGTHY OR NUMEROUS DEPLOYMENTS.

(a) Funding Source for Allowance.--Section 436(a) of title
37, United States Code, is amended by adding at the end the
following new sentence: ``The Secretary shall pay the allowance
from appropriations available for operation and maintenance for
the armed force in which the member serves.''.
(b) Expanded Report Regarding Management of Individual
Member Deployments.--Section 574(d) of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat. 1654A-138) is
amended in the second sentence by striking paragraphs (1) and
(2) and inserting the following new paragraphs:
``(1) a discussion of the experience in tracking
and recording the deployments of members of the Armed
Forces and the payment of the per diem allowance for
lengthy or numerous deployments in accordance with
section 436 of title 37, United States Code;
``(2) specific comments regarding the effect of
section 991 of title 10, United States Code, and
section 436 of title 37, United States Code, on the
readiness of the Navy and Marine Corps given the
deployment intensive mission of these services; and
``(3) any recommendations for revision of section
991 of title 10, United States Code, or section 436 of
title 37, United States Code, that the Secretary
considers appropriate.''.

SEC. 593. CLARIFICATION OF DISABILITY SEVERANCE PAY COMPUTATION.

(a) Clarification.--Section 1212(a)(2) of title 10, United
States Code, is amended by striking ``for promotion'' in
subparagraph (C) and the first place it appears in subparagraph
(D).
(b) Effective Date.--The amendments made by subsection (a)
shall apply with respect to members separated under section
1203 or 1206 of title 10, United States Code, on or after date
of the enactment of this Act.

SEC. 594. TRANSPORTATION OR STORAGE OF PRIVATELY OWNED VEHICLES ON
CHANGE OF PERMANENT STATION.

(a) Advance Payment of Storage Costs.--Subsection (b) of
section 2634 of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(4) Storage costs payable under this subsection may be
paid in advance.''.
(b) Shipment on Permanent Change of Station Within CONUS.--
Subsection (h)(1) of such section is amended by striking
``includes'' in the second sentence and all that follows and
inserting ``includes the following:
``(A) An authorized change in home port of
a vessel.
``(B) A transfer or assignment between two
permanent stations in the continental United
States when--
``(i) the member cannot, because of
injury or the conditions of the order,
drive the motor vehicle between the
permanent duty stations; or
``(ii) the Secretary concerned
determines that it is advantageous and
cost-effective to the United States for
one motor vehicle of the member to be
transported between the permanent duty
stations.''.
(c) Effective Date.--The amendments made by this section
apply to orders to make a change of permanent station that are
issued on or after the date of the enactment of this Act.

SEC. 595. REPEAL OF REQUIREMENT FOR FINAL COMPTROLLER GENERAL REPORT
RELATING TO ARMY END STRENGTH ALLOCATIONS.

Section 552 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 319; 10 U.S.C.
115 note) is repealed.

SEC. 596. CONTINUED DEPARTMENT OF DEFENSE ADMINISTRATION OF NATIONAL
GUARD CHALLENGE PROGRAM AND DEPARTMENT OF DEFENSE
STARBASE PROGRAM.

(a) National Guard Challenge Program.--Section 509(b) of
title 32, United States Code, is amended--
(1) in paragraph (2)(A), by striking ``in a fiscal
year'' and inserting ``in fiscal year 2001 or 2002'';
and
(2) by adding at the end the following new
paragraph:
``(4) The Secretary of Defense shall remain the executive
agent to carry out the National Guard Challenge Program
regardless of the source of funds for the program or any
transfer of jurisdiction over the program within the executive
branch. As provided in subsection (a), the Secretary may use
the National Guard to conduct the program.''.
(b) STARBASE Program.--Section 2193b(f) of title 10, United
States Code, is amended--
(1) by inserting ``(1)'' before ``The Secretary'';
and
(2) by adding at the end the following new
paragraph:
``(2) The Secretary of Defense shall remain the executive
agent to carry out the program regardless of the source of
funds for the program or any transfer of jurisdiction over the
program within the executive branch.''.
(c) Repeal of Contingent Funding for JROTC.--(1) Section
2033 of title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter 102
of such title is amended by striking the item relating to
section 2033.
(3) The amendments made by this subsection shall take
effect on October 1, 2002.

SEC. 597. REPORT ON DEFENSE SCIENCE BOARD RECOMMENDATION ON ORIGINAL
APPOINTMENTS IN REGULAR GRADES FOR ACADEMY
GRADUATES AND CERTAIN OTHER NEW OFFICERS.

The Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on the
legislative and policy changes required to implement the
recommendation of the Defense Science Board (made in its report
entitled ``Final Report on Human Resources Strategy'' and dated
February 28, 2000) that all officers be given initial regular
commissions. The Secretary shall include in that report a
description of the measures necessary to transition the current
active-duty officer corps to an all-regular status, if the
Board's recommendation were adopted, and shall provide the
Secretary's position with regard to implementing that
recommendation. The report shall be submitted not later than
six months after the date of the enactment of this Act.

SEC. 598. SENSE OF CONGRESS REGARDING THE SELECTION OF OFFICERS FOR
RECOMMENDATION FOR APPOINTMENT AS COMMANDER, UNITED
STATES TRANSPORTATION COMMAND.

(a) Findings.--Congress makes the following findings:
(1) The Goldwater-Nichols Department of Defense
Reorganization Act of 1986 (Public Law 99-433)
envisioned that officers would be selected for
recommendation to the President for appointment as the
commander of a combatant command under chapter 6 of
title 10, United States Code (as added by that Act), on
the basis of being the best qualified officer for that
position, rather than the best qualified officer of the
armed force that had historically supplied officers to
serve in that position.
(2) In order to provide for greater competition
among the Armed Forces for selection of officers for
assignment as the commanders of the combatant commands
and assignment to certain other joint positions in the
grade of general or admiral, Congress provided
temporary relief from the limitation on the number of
officers serving on active duty in the grade of general
or admiral in section 405 of the National Defense
Authorization Act for Fiscal Year 1995 and thereafter
extended that relief until September 30, 2003, but has
also required that the Secretary of Defense be
furnished the name of at least one officer from each of
the Armed Forces for consideration for appointment to
each such position.
(3) Most of the positions of commanders of the
combatant commands have been filled successively by
officers of more than one of the Armed Forces since the
enactment of the Goldwater-Nichols Department of
Defense Reorganization Act of 1986.
(4) However, general officers of the Air Force with
only limited experience in the transportation services
have usually filled the position of commander of the
United States Transportation Command.
(5) The United States Transportation Command could
benefit from the appointment of future commanders
selected from the Army, Navy and Marine Corps, in
addition to the Air Force.
(b) Sense of Congress.--It is the sense of Congress that
the Secretary of Defense, when considering officers for
recommendation to the President for appointment as commander of
the United States Transportation Command, should not rely upon
officers of one service which has traditionally provided
officers to fill that position but should select for such
recommendation the best qualified officer of the Army, Navy,
Air Force, or Marine Corps.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Subtitle B--Bonuses and Special and Incentive Pays

Subtitle C--Travel and Transportation Allowances

Subtitle D--Retirement and Survivor Benefit Matters

Subtitle E--Other Matters

Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2002.

(a) Waiver of Section 1009 Adjustment.--The adjustment to
become effective during fiscal year 2002 required by section
1009 of title 37, United States Code, in the rates of monthly
basic pay authorized members of the uniformed services shall
not be made.
(b) Increase in Basic Pay.--Effective on January 1, 2002,
the rates of monthly basic pay for members of the uniformed
services within each pay grade are as follows:

COMMISSIONED OFFICERS \1\
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

COMMISSIONED OFFICERS \1\--Continued
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
Pay Over 8 Over 10 Over 12 Over 14 Over 16
Grade
----------------------------------------------------------------------------------------------------------------
O-10 \2\....................................... $0.00 $0.00 $0.00 $0.00 $0.00
O-9............................................ 0.00 0.00 0.00 0.00 0.00
O-8............................................ 8,135.10 8,210.70 8,519.70 8,608.50 8,874.30
O-7............................................ 6,840.30 7,051.20 7,261.80 7,472.70 8,135.10
O-6............................................ 5,418.90 5,448.60 5,448.60 5,628.60 6,305.70
O-5............................................ 4,673.10 4,813.50 5,073.30 5,413.50 5,755.80
O-4............................................ 4,395.90 4,696.20 4,930.20 5,092.50 5,255.70
O-3 \3\........................................ 4,070.10 4,232.40 4,441.20 4,549.50 4,549.50
O-2 \3\........................................ 3,344.10 3,344.10 3,344.10 3,344.10 3,344.10
O-1 \3\........................................ 2,638.50 2,638.50 2,638.50 2,638.50 2,638.50
----------------------------------------------------------------
Over 18 Over 20 Over 22 Over 24 Over 26
----------------------------------------------------------------
O-10 \2\....................................... $0.00 11,601.90 11,659.20 11,901.30 12,324.00
O-9............................................ 0.00 10,147.50 10,293.60 10,504.80 10,873.80
O-8............................................ 9,259.50 9,614.70 9,852.00 9,852.00 9,852.00
O-7............................................ 8,694.90 8,694.90 8,694.90 8,694.90 8,738.70
O-6............................................ 6,627.00 6,948.30 7,131.00 7,316.10 7,675.20
O-5............................................ 5,919.00 6,079.80 6,262.80 6,262.80 6,262.80
O-4............................................ 5,310.60 5,310.60 5,310.60 5,310.60 5,310.60
O-3 \3\........................................ 4,549.50 4,549.50 4,549.50 4,549.50 4,549.50
O-2 \3\........................................ 3,344.10 3,344.10 3,344.10 3,344.10 3,344.10
O-1 \3\........................................ 2,638.50 2,638.50 2,638.50 2,638.50 2,638.50
----------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
officers in pay grades 0-7 through O-10 may not exceed the rate of pay for level III of the Executive Schedule
and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the
Executive Schedule.
\2\ Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff,
Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the
Marine Corps, or Commandant of the Coast Guard, the rate of basic pay for this grade is $13,598.10, regardless
of cumulative years of service computed under section 205 of title 37, United States Code.
\3\ This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
over 4 years of active duty service as an enlisted member or warrant officer.

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

WARRANT OFFICERS \1\
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

ENLISTED MEMBERS \1\
Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
Pay 2 or less Over 2 Over 3 Over 4 Over 6
Grade
----------------------------------------------------------------------------------------------------------------
E-9 \2\........................................ $0.00 $0.00 $0.00 $0.00 $0.00
E-8............................................ 0.00 0.00 0.00 0.00 0.00
E-7............................................ 1,986.90 2,169.00 2,251.50 2,332.50 2,417.40
E-6............................................ 1,701.00 1,870.80 1,953.60 2,033.70 2,117.40
E-5............................................ 1,561.50 1,665.30 1,745.70 1,828.50 1,912.80
E-4............................................ 1,443.60 1,517.70 1,599.60 1,680.30 1,752.30
E-3............................................ 1,303.50 1,385.40 1,468.50 1,468.50 1,468.50
E-2............................................ 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30
E-1............................................ \3\ 1,105.50 1,105.50 1,105.50 1,105.50
1,105.50
----------------------------------------------------------------
Over 8 Over 10 Over 12 Over 14 Over 16
----------------------------------------------------------------
E-9 \2\........................................ $0.00 $3,423.90 3,501.30 3,599.40 3,714.60
E-8............................................ 2,858.10 2,940.60 3,017.70 3,110.10 3,210.30
E-7............................................ 2,562.90 2,645.10 2,726.40 2,808.00 2,892.60
E-6............................................ 2,254.50 2,337.30 2,417.40 2,499.30 2,558.10
E-5............................................ 2,030.10 2,110.20 2,193.30 2,193.30 2,193.30
E-4............................................ 1,752.30 1,752.30 1,752.30 1,752.30 1,752.30
E-3............................................ 1,468.50 1,468.50 1,468.50 1,468.50 1,468.50
E-2............................................ 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30
E-1............................................ 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50
----------------------------------------------------------------
Over 18 Over 20 Over 22 Over 24 Over 26
----------------------------------------------------------------
E-9 \2\........................................ $3,830.40 3,944.10 4,098.30 4,251.30 4,467.00
E-8............................................ 3,314.70 3,420.30 3,573.00 3,724.80 3,937.80
E-7............................................ 2,975.10 3,057.30 3,200.40 3,292.80 3,526.80
E-6............................................ 2,602.80 2,602.80 2,602.80 2,602.80 2,602.80
E-5............................................ 2,193.30 2,193.30 2,193.30 2,193.30 2,193.30
E-4............................................ 1,752.30 1,752.30 1,752.30 1,752.30 1,752.30
E-3............................................ 1,468.50 1,468.50 1,468.50 1,468.50 1,468.50
E-2............................................ 1,239.30 1,239.30 1,239.30 1,239.30 1,239.30
E-1............................................ 1,105.50 1,105.50 1,105.50 1,105.50 1,105.50
----------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted
members may not exceed the rate of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief Petty Officer
of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty
Officer of the Coast Guard, basic pay for this grade is $5,382.90, regardless of cumulative years of service
computed under section 205 of title 37, United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic
pay is $1,022.70.

SEC. 602. BASIC PAY RATE FOR CERTAIN RESERVE COMMISSIONED OFFICERS WITH
PRIOR SERVICE AS AN ENLISTED MEMBER OR WARRANT
OFFICER.

(a) Service Credit.--Section 203(d) of title 37, United
States Code, is amended--
(1) by inserting ``(1)'' after ``(d)'';
(2) by striking ``active service as a warrant
officer or as a warrant officer and an enlisted
member'' and inserting ``service described in paragraph
(2)''; and
(3) by adding at the end the following new
paragraph:
``(2) Service to be taken into account for purposes of
computing basic pay under paragraph (1) is as follows:
``(A) Active service as a warrant officer or as a
warrant officer and an enlisted member, in the case
of--
``(i) a commissioned officer on active duty
who is paid from funds appropriated for active-
duty personnel; or
``(ii) a commissioned officer on active
Guard and Reserve duty.
``(B) In the case of a commissioned officer (not
referred to in subparagraph (A)(ii)) who is paid from
funds appropriated for reserve personnel, service as a
warrant officer, or as a warrant officer and enlisted
member, for which at least 1,460 points have been
credited to the officer for the purposes of section
12732(a)(2) of title 10.''.
(b) Application of Amendments.--The amendments made by
subsection (a) shall apply with respect to months beginning on
or after the date of the enactment of this Act.

SEC. 603. RESERVE COMPONENT COMPENSATION FOR DISTRIBUTED LEARNING
ACTIVITIES PERFORMED AS INACTIVE-DUTY TRAINING.

(a) Compensation Authorized.--Section 206(d) of title 37,
United States Code, is amended--
(1) by striking ``This section'' and inserting
``(1) Except as provided in paragraph (2), this
section'';
(2) by striking ``an armed force'' and inserting
``a uniformed service''; and
(3) by adding at the end the following new
paragraph:
``(2) A member of the Selected Reserve of the Ready Reserve
may be paid compensation under this section at a rate and under
terms determined by the Secretary of Defense, but not to exceed
the rate otherwise applicable to the member under subsection
(a), upon the member's successful completion of a course of
instruction undertaken by the member using electronic-based
distributed learning methodologies to accomplish training
requirements related to unit readiness or mobilization, as
directed for the member by the Secretary concerned. The
compensation may be paid regardless of whether the course of
instruction was under the direct control of the Secretary
concerned or included the presence of an instructor.''.
(b) Definition of Inactive-Duty Training.--Section 101(22)
of such title is amended by inserting after ``but'' the
following: ``(except as provided in section 206(d)(2) of this
title)''.

SEC. 604. SUBSISTENCE ALLOWANCES.

(a) Baseline Amount for Calculating Allowance for Enlisted
Members.--Section 402(b) of title 37, United States Code, is
amended by adding at the end the following new paragraph:
``(4) For purposes of implementing paragraph (2), the
monthly rate of basic allowance for subsistence that was in
effect for an enlisted member for calendar year 2001 is deemed
to be $233.''.
(b) Rate for Enlisted Members When Messing Facilities Not
Available.--(1) Notwithstanding section 402 of title 37, United
States Code, the Secretary of Defense, and the Secretary of
Transportation with respect to the Coast Guard when it is not
operating as a service in the Navy, may prescribe a rate of
basic allowance for subsistence to apply to enlisted members of
the uniformed services when messing facilities of the United
States are not available. The rate may be higher than the rate
of basic allowance for subsistence that would otherwise be
applicable to the members under that section, but may not be
higher than the highest rate that was in effect for enlisted
members of the uniformed services under those circumstances
before the date of the enactment of this Act.
(2) Paragraph (1) shall cease to be effective on the first
day of the first month for which the basic allowance for
subsistence calculated for enlisted members of the uniformed
services under section 402 of title 37, United States Code,
exceeds the rate of the basic allowance for subsistence
prescribed under paragraph (1).
(c) Continuation of BAS Transitional Authority.--
Notwithstanding the repeal of subsections (c) through (f) of
section 602 of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105-85; 37 U.S.C. 402 note) by
section 603(c) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-145), the basic allowance
for subsistence shall be paid in accordance with such
subsections for October, November, and December of 2001.
(d) Eligibility for Supplemental Subsistence Allowance.--
Section 402a(b)(1) of title 37, United States Code, is amended
by inserting ``with dependents'' after ``a member of the armed
forces''.

SEC. 605. ELIGIBILITY FOR TEMPORARY HOUSING ALLOWANCE WHILE IN TRAVEL
OR LEAVE STATUS BETWEEN PERMANENT DUTY STATIONS.

(a) Repeal of Pay Grade Limitation.--Section 403(i) of
title 37, United States Code, is amended by striking ``who is
in a pay grade E-4 (4 or more years of service) or above''.
(b) Effective Date; Application.--The amendment made by
this section shall take effect on January 1, 2003, and apply to
members of the uniformed services in a travel or leave status
between permanent duty stations on or after that date.

SEC. 606. UNIFORM ALLOWANCE FOR OFFICERS.

(a) Relation to Initial Uniform Allowance.--Section
416(b)(1) of title 37, United States Code, is amended by
striking ``$200'' and inserting ``$400''.
(b) Effective Date.--The amendment made by this section
shall take effect as of October 1, 2000.

SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS ELECTING
UNACCOMPANIED TOUR BY REASON OF HEALTH LIMITATIONS
OF DEPENDENTS.

(a) Entitlement to Allowance.--Section 427(c) of title 37,
United States Code, is amended--
(1) by striking ``A member'' in the first sentence
and inserting ``(1) Except as provided in paragraph (2)
or (3), a member'';
(2) in the second sentence, by striking ``The
Secretary concerned may waive the preceding sentence''
and inserting the following:
``(3) The Secretary concerned may waive paragraph (1)'';
and
(3) by inserting after the first sentence the
following new paragraph:
``(2) The prohibition in the first sentence of paragraph
(1) does not apply to a member who elects to serve an
unaccompanied tour of duty because a dependent cannot accompany
the member to or at that permanent station for certified
medical reasons.''.
(b) Application of Amendment.--Paragraph (2) of section
427(c) of title 37, United States Code, as added by subsection
(a)(3), shall apply with respect to pay periods beginning on or
after January 1, 2002, for a member of the uniformed services
covered by such paragraph regardless of the date on which the
member first made the election to serve an unaccompanied tour
of duty.

Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY
AUTHORITIES FOR RESERVE FORCES.

(a) Special Pay for Health Professionals in Critically
Short Wartime Specialties.--Section 302g(f ) of title 37,
United States Code, is amended by striking ``December 31,
2001'' and inserting ``December 31, 2002''.
(b) Selected Reserve Reenlistment Bonus.--Section 308b(f )
of such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.
(c) Selected Reserve Enlistment Bonus.--Section 308c(e) of
such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.
(d) Special Pay for Enlisted Members Assigned to Certain
High Priority Units.--Section 308d(c) of such title is amended
by striking ``December 31, 2001'' and inserting ``December 31,
2002''.
(e) Selected Reserve Affiliation Bonus.--Section 308e(e) of
such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.
(f ) Ready Reserve Enlistment and Reenlistment Bonus.--
Section 308h(g) of such title is amended by striking ``December
31, 2001'' and inserting ``December 31, 2002''.
(g) Prior Service Enlistment Bonus.--Section 308i(f ) of
such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.
(h) Repayment of Education Loans for Certain Health
Professionals Who Serve in the Selected Reserve.--Section
16302(d) of title 10, United States Code, is amended by
striking ``January 1, 2002'' and inserting ``January 1, 2003''.

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY
AUTHORITIES FOR NURSE OFFICER CANDIDATES,
REGISTERED NURSES, AND NURSE ANESTHETISTS.

(a) Nurse Officer Candidate Accession Program.--Section
2130a(a)(1) of title 10, United States Code, is amended by
striking ``December 31, 2001'' and inserting ``December 31,
2002''.
(b) Accession Bonus for Registered Nurses.--Section
302d(a)(1) of title 37, United States Code, is amended by
striking ``December 31, 2001'' and inserting ``December 31,
2002''.
(c) Incentive Special Pay for Nurse Anesthetists.--Section
302e(a)(1) of title 37, United States Code, is amended by
striking ``December 31, 2001'' and inserting ``December 31,
2002''.

SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR
NUCLEAR OFFICERS.

(a) Special Pay for Nuclear-Qualified Officers Extending
Period of Active Service.--Section 312(e) of such title is
amended by striking ``December 31, 2001'' and inserting
``December 31, 2002''.
(b) Nuclear Career Accession Bonus.--Section 312b(c) of
such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.
(c) Nuclear Career Annual Incentive Bonus.--Section 312c(d)
of such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.

SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY
AUTHORITIES.

(a) Aviation Officer Retention Bonus.--Section 301b(a) of
title 37, United States Code, is amended by striking ``December
31, 2001'' and inserting ``December 31, 2002''.
(b) Reenlistment Bonus for Active Members.--Section 308(g)
of such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.
(c) Enlistment Bonus for Active Members.--Section 309(e) of
such title is amended by striking ``December 31, 2001'' and
inserting ``December 31, 2002''.
(d) Retention Bonus for Members With Critical Military
Skills.--Section 323(i) of such title is amended by striking
``December 31, 2001'' and inserting ``December 31, 2002''.

SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARITIME VISIT, BOARD,
SEARCH, AND SEIZURE TEAMS.

(a) Additional Type of Duty Eligible for Pay.--Section
301(a) of title 37, United States Code, is amended--
(1) in paragraph (10), by striking ``or'' at the
end;
(2) by redesignating paragraph (11) as paragraph
(12); and
(3) by inserting after paragraph (10) the following
new paragraph:
``(11) involving regular participation as a member
of a team conducting visit, board, search, and seizure
operations aboard vessels in support of maritime
interdiction operations; or''.
(b) Monthly Amount.--Subsection (c) of such section is
amended--
(1) in paragraph (1), by striking ``(10)'' and
inserting ``(11)''; and
(2) in paragraph (2)(A), by striking ``(11)'' and
inserting ``(12)''.
(c) Application of Amendment.--Paragraph (11) of section
301(a) of title 37, United States Code, as added by subsection
(a)(3), shall apply to duty described in such paragraph that is
performed on or after January 1, 2002.

SEC. 616. ELIGIBILITY FOR CERTAIN CAREER CONTINUATION BONUSES FOR EARLY
COMMITMENT TO REMAIN ON ACTIVE DUTY.

(a) Aviation Officers.--Section 301b(b)(4) of title 37,
United States Code, is amended by inserting before the period
at the end the following: ``or is within one year of completing
such commitment''.
(b) Surface Warfare Officers.--Section 319(a)(3) of such
title is amended by inserting before the period at the end the
following: ``or is within one year of completing such
commitment''.

SEC. 617. SECRETARIAL DISCRETION IN PRESCRIBING SUBMARINE DUTY
INCENTIVE PAY RATES.

(a) Authority of Secretary of the Navy; Maximum Rate.--
Subsection (b) of section 301c of title 37, United States Code,
is amended to read as follows:
``(b) Monthly Rates.--The Secretary of the Navy shall
prescribe the monthly rates of submarine duty incentive pay,
except that the maximum monthly rate may not exceed $1,000.''.
(b) Conforming and Clerical Amendments.--Such section is
further amended--
(1) in subsection (a)--
(A) by inserting ``Eligibility
Requirements.--'' after ``(a)''; and
(B) by striking ``set forth in'' each place
it appears and inserting ``prescribed pursuant
to'';
(2) in subsection (c), by inserting ``Exceptions.--
'' after ``(c)''; and
(3) in subsection (d)--
(A) by inserting ``Applicability to Certain
Naval Reserve Duty.--'' after ``(d)''; and
(B) by striking ``authorized by'' and
inserting ``prescribed pursuant to''.
(c) Transition.--The tables set forth in subsection (b) of
section 301c of title 37, United States Code, as in effect on
the day before the date of the enactment of this Act, shall
continue to apply until the later of the following:
(1) January 1, 2002.
(2) The date on which the Secretary of the Navy
prescribes new submarine duty incentive pay rates as
authorized by the amendment made by subsection (a).

SEC. 618. CONFORMING ACCESSION BONUS FOR DENTAL OFFICERS AUTHORITY WITH
AUTHORITIES FOR OTHER SPECIAL PAY AND BONUSES.

Section 302h(a)(1) of title 37, United States Code, is
amended by striking ``the date of the enactment of this
section, and ending on September 30, 2002'' and inserting
``September 23, 1996, and ending on December 31, 2002''.

SEC. 619. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR INDIVIDUAL READY
RESERVE BONUS FOR REENLISTMENT, ENLISTMENT, OR
EXTENSION OF ENLISTMENT.

(a) Eligibility Based on Qualifications in Critically Short
Wartime Skills or Specialties.--Subsection (a) of section 308h
of title 37, United States Code, is amended to read as follows:
``(a) Authority and Eligibility Requirements.--(1) The
Secretary concerned may pay a bonus as provided in subsection
(b) to an eligible person who reenlists, enlists, or
voluntarily extends an enlistment in a reserve component of an
armed force for assignment to an element (other than the
Selected Reserve) of the Ready Reserve of that armed force if
the reenlistment, enlistment, or extension is for a period of
three years, or for a period of six years, beyond any other
period the person is obligated to serve.
``(2) A person is eligible for a bonus under this section
if the person--
``(A) is or has been a member of an armed force;
``(B) is qualified in a skill or specialty
designated by the Secretary concerned as a critically
short wartime skill or critically short wartime
specialty; and
``(C) has not failed to complete satisfactorily any
original term of enlistment in the armed forces.
``(3) For the purposes of this section, the Secretary
concerned may designate a skill or specialty as a critically
short wartime skill or critically short wartime specialty for
an armed force under the jurisdiction of the Secretary if the
Secretary determines that--
``(A) the skill or specialty is critical to meet
wartime requirements of the armed force; and
``(B) there is a critical shortage of personnel in
that armed force who are qualified in that skill or
specialty.''.
(b) Clerical Amendments.--Such section is further amended--
(1) in subsection (b), by inserting ``Bonus
Amounts; Payment.--'' after ``(b)'';
(2) in subsection (c), by inserting ``Repayment of
Bonus.--'' after ``(c)'';
(3) in subsection (d), by inserting ``Treatment of
Reimbursement Obligation.--'' after ``(d)'';
(4) in subsection (e), by inserting ``Effect of
Bankruptcy.--'' after ``(e)'';
(5) in subsection (f), by inserting
``Regulations.--'' after ``(f)''; and
(6) in subsection (g), by inserting ``Termination
of Authority.--'' after ``(g)''.
(c) Regulations.--Not later than 180 days after the date of
the enactment of this Act, the Secretaries of the military
departments shall prescribe such regulations as may be
necessary for administering subsection (a) of section 308h of
title 37, United States Code, as amended by this section.
(d) Application of Amendment.--Subsection (a) of section
308h of title 37, United States Code, as amended by this
section, shall apply with respect to reserve component
reenlistments, enlistments, and extensions of enlistments that
are executed on or after the first day of the first month that
begins more than 180 days after the date of the enactment of
this Act. Subsection (a) of such section 308h, as in effect on
the day before the date of the enactment of this Act, shall
continue to apply with respect to reserve component
reenlistments, enlistments, and extensions of enlistments that
are executed before the first day of that first month.

SEC. 620. INSTALLMENT PAYMENT AUTHORITY FOR 15-YEAR CAREER STATUS
BONUS.

(a) Member Election.--Section 322(d) of title 37, United
States Code, is amended--
(1) in paragraph (1), by striking ``paid in a
single lump sum of'' and inserting ``equal to'';
(2) by redesignating paragraph (2) as paragraph
(4), and in such paragraph, by striking ``The bonus''
and inserting ``The lump sum payment of the bonus, and
the first installment payment in the case of members
who elect to receive the bonus in installments,''; and
(3) by inserting after paragraph (1) the following
new paragraphs:
``(2) A member electing to receive the bonus under this
section shall elect one of the following payment options:
``(A) A single lump sum of $30,000.
``(B) Two installments of $15,000 each.
``(C) Three installments of $10,000 each.
``(D) Four installments of $7,500 each.
``(E) Five installments of $6,000 each.
``(3) If a member elects installment payments under
paragraph (2), the second installment (and subsequent
installments, as applicable) shall be paid on the earlier of
the following dates:
``(A) The annual anniversary date of the payment of
the first installment.
``(B) January 15 of each succeeding calendar
year.''.
(b) Application to Existing Agreements.--The Secretary
concerned (as defined in section 101(5) of title 37, United
States Code) shall extend to each member of the uniformed
services who has executed the written agreement required by
subsection (a)(2) of section 322 of such title before the date
of the enactment of this Act, but who has not received the lump
sum payment by that date, an opportunity to make the election
authorized by subsection (d) of such section, as amended by
this section.

SEC. 621. ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL SKILLS.

(a) Bonus Authorized.--Chapter 5 of title 37, United States
Code, is amended by adding at the end the following new
section:

``Sec. 324. Special pay: accession bonus for new officers in critical
skills

``(a) Accession Bonus Authorized.--Under regulations
prescribed by the Secretary concerned, a person who executes a
written agreement to accept a commission as an officer of the
armed forces and serve on active duty in a designated critical
officer skill for the period specified in the agreement may,
upon acceptance of the agreement by the Secretary concerned, be
paid an accession bonus in an amount determined by the
Secretary concerned.
``(b) Designation of Critical Officer Skills.--(1) The
Secretary concerned shall designate the critical officer skills
for the purposes of this section. A skill may be designated as
a critical officer skill for an armed force under this
subsection if--
``(1) in order to meet requirements of the armed
force, it is critical for the armed force to have a
sufficient number of officers who are qualified in that
skill; and
``(2) in order to mitigate a current or projected
significant shortage of personnel in the armed force
who are qualified in that skill, it is critical to
access into that armed force in sufficient numbers
persons who are qualified in that skill or are to be
trained in that skill.
``(c) Limitation on Amount of Bonus.--The amount of an
accession bonus under subsection (a) may not exceed $60,000.
``(d) Payment Method.--Upon acceptance of a written
agreement under subsection (a) by the Secretary concerned, the
total amount of the accession bonus payable under the agreement
becomes fixed. The agreement shall specify whether the
accession bonus will be paid by the Secretary in a lump sum or
installments.
``(e) Relation to Other Accession Bonus Authority.--An
individual may not receive an accession bonus under this
section and section 302d, 302h, 302j, or 312b of this title for
the same period of service.
``(f) Repayment for Failure To Commence or Complete
Obligated Service.--(1) An individual who, after having
received all or part of the accession bonus under an agreement
referred to in subsection (a), fails to accept a commission as
an officer or to commence or complete the total period of
active duty service specified in the agreement shall repay to
the United States the amount that bears the same ratio to the
total amount of the bonus authorized for such person as the
unserved part of the period of agreed active duty service bears
to the total period of the agreed active duty service. However,
the amount required to be repaid by the individual may not
exceed the amount of the accession bonus that was paid to the
individual.
``(2) Subject to paragraph (3), an obligation to repay the
United States imposed under paragraph (1) is for all purposes a
debt owed to the United States. A discharge in bankruptcy under
title 11 that is entered less than five years after the
termination of an agreement entered into under subsection (a)
does not discharge the individual signing the agreement from a
debt arising under such agreement or under paragraph (1).
``(3) The Secretary concerned may waive, in whole or in
part, the repayment requirement under paragraph (1) on a case-
by-case basis if the Secretary concerned determines that
repayment would be against equity and good conscience or would
be contrary to the best interests of the United States.
``(g) Termination of Authority.--No agreement under this
section may be entered into after December 31, 2002.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``324. Special pay: accession bonus for new officers in critical
skills.''.

SEC. 622. EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS AND
EXTENSIONS OF SERVICE IN CRITICAL SPECIALTIES.

(a) Establishment of Savings Plan.--(1) Chapter 5 of title
37, United States Code, is amended by inserting after section
324, as added by section 621, the following new section:

``Sec. 325. Incentive bonus: savings plan for education expenses and
other contingencies

``(a) Benefit and Eligibility.--The Secretary concerned may
purchase United States savings bonds under this section for a
member of the armed forces who is eligible as follows:
``(1) A member who, before completing three years
of service on active duty, enters into a commitment to
perform qualifying service.
``(2) A member who, after completing three years of
service on active duty, but not more than nine years of
service on active duty, enters into a commitment to
perform qualifying service.
``(3) A member who, after completing nine years of
service on active duty, enters into a commitment to
perform qualifying service.
``(b) Qualifying Service.--For the purposes of this
section, qualifying service is service on active duty in a
specialty designated by the Secretary concerned as critical to
meet requirements (whether or not such specialty is designated
as critical to meet wartime or peacetime requirements) for a
period that--
``(1) is not less than six years; and
``(2) does not include any part of a period for
which the member is obligated to serve on active duty
under an enlistment or other agreement for which a
benefit has previously been paid under this section.
``(c) Forms of Commitment to Additional Service.--For the
purposes of this section, a commitment means--
``(1) in the case of an enlisted member, a
reenlistment; and
``(2) in the case of a commissioned officer, an
agreement entered into with the Secretary concerned.
``(d) Amounts of Bonds.--The total of the face amounts of
the United States savings bonds authorized to be purchased for
a member under this section for a commitment shall be as
follows:
``(1) In the case of a purchase for a member under
paragraph (1) of subsection (a), $5,000.
``(2) In the case of a purchase for a member under
paragraph (2) of subsection (a), the amount equal to
the excess of $15,000 over the total of the face
amounts of any United States savings bonds previously
purchased for the member under this section.
``(3) In the case of a purchase for a member under
paragraph (3) of subsection (a), the amount equal to
the excess of $30,000 over the total of the face
amounts of any United States savings bonds previously
purchased for the member under this section.
``(e) Total Amount of Benefit.--The total amount of the
benefit authorized for a member when United States savings
bonds are purchased for the member under this section by reason
of a commitment by that member shall be the sum of--
``(1) the purchase price of the United States
savings bonds; and
``(2) the amounts that would be deducted and
withheld for the payment of individual income taxes if
the total amount computed under this subsection for
that commitment were paid to the member as a bonus.
``(f) Amount Withheld for Taxes.--The total amount payable
for a member under subsection (e)(2) for a commitment by that
member shall be withheld, credited, and otherwise treated in
the same manner as amounts deducted and withheld from the basic
pay of the member.
``(g) Repayment for Failure To Complete Obligated
Service.--(1) If a person fails to complete the qualifying
service for which the person is obligated under a commitment
for which a benefit has been paid under this section, the
person shall refund to the United States the amount that bears
the same ratio to the total amount paid for the person (as
computed under subsection (e)) for that particular commitment
as the uncompleted part of the period of qualifying service
bears to the total period of the qualifying service for which
obligated.
``(2) Subject to paragraph (3), an obligation to reimburse
the United States imposed under paragraph (1) is for all
purposes a debt owed to the United States.
``(3) The Secretary concerned may waive, in whole or in
part, a refund required under paragraph (1) if the Secretary
concerned determines that recovery would be against equity and
good conscience or would be contrary to the best interests of
the United States.
``(4) A discharge in bankruptcy under title 11 that is
entered less than five years after the termination of an
enlistment or other agreement under this section does not
discharge the person signing such enlistment or other agreement
from a debt arising under the enlistment or agreement,
respectively, or this subsection.
``(h) Relationship to Other Special Pays.--The benefit
authorized under this section is in addition to any other bonus
or incentive or special pay that is paid or payable to a member
under any other provision of this chapter for any portion of
the same qualifying service.
``(i) Regulations.--This section shall be administered
under regulations prescribed by the Secretary of Defense for
the armed forces under his jurisdiction and by the Secretary of
Transportation for the Coast Guard when the Coast Guard is not
operating as a service in the Navy.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 324,
as added by section 621(b), the following new item:

``325. Incentive bonus: savings plan for education expenses and other
contingencies.''.

(b) Application of Amendment.--Section 325 of title 37,
United States Code, as added by subsection (a), shall apply
with respect to reenlistments and other agreements for
qualifying service, as described in that section, that are
entered into on or after October 1, 2001.
(c) Funding For Fiscal Year 2002.--Of the amount authorized
to be appropriated to the Department of Defense for military
personnel for fiscal year 2002 by section 421, $20,000,000 may
be available in that fiscal year for the purchase of United
States savings bonds under section 325 of title 37, United
States Code, as added by subsection (a).

SEC. 623. CONTINUATION OF PAYMENT OF SPECIAL AND INCENTIVE PAY AT
UNREDUCED RATES DURING STOP LOSS PERIODS.

(a) Authority To Continue.--(1) Chapter 17 of title 37,
United States Code, is amended by adding at the end the
following new section:

``Sec. 909. Special and incentive pay: payment at unreduced rates
during suspension of personnel laws

``(a) Authority To Continue Payment at Unreduced Rates.--To
ensure fairness and recognize the contributions of members of
the armed forces to military essential missions, the Secretary
of the military department concerned may authorize members who
are involuntarily retained on active duty under section 123 or
12305 of title 10 or any other provision of law and who,
immediately before retention on active duty, were entitled or
eligible for special pay or incentive pay under chapter 5 of
this title, to receive that special pay or incentive pay for
qualifying service performed during the retention period,
without a reduction in the payment rate below the rate the
members received immediately before retention on active duty,
notwithstanding any requirement otherwise applicable to that
special pay or incentive pay that would reduce the payment rate
by reason of the years of service of the members.
``(b) Suspension During Time of War.--Subsection (a) does
not apply with respect to a special pay or incentive pay under
chapter 5 of this title, whenever the authority to provide that
special pay or incentive pay is suspended by the President or
the Secretary of Defense during a time of war.
``(c) Qualifying Service Defined.--In this section, the
term `qualifying service' means service for which a particular
special pay or incentive pay is payable under the authority of
a provision of chapter 5 of this title.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``909. Special and incentive pay: payment at unreduced rates during
suspension of personnel laws.''.

(b) Application of Amendments.--Section 909 of title 37,
United States Code, as added by subsection (a)(1), shall apply
with respect to pay periods beginning after September 11, 2001.

SEC. 624. RETROACTIVE AUTHORIZATION FOR IMMINENT DANGER PAY FOR SERVICE
IN CONNECTION WITH OPERATION ENDURING FREEDOM.

(a) Retroactive Authorization.--The Secretary of Defense
may provide for the payment of imminent danger pay under
section 310 of title 37, United States Code, to members of the
Armed Forces assigned to duty in the areas specified in
subsection (b) in connection with the contingency operation
known as Operation Enduring Freedom with respect to periods of
duty served in those areas during the period beginning on
September 19, 2001, and ending October 31, 2001.
(b) Specified Areas.--The areas referred to in subsection
(a) are the following:
(1) The land areas of Kyrgyzstan, Oman, the United
Arab Emirates, and Uzbekistan.
(2) The Red Sea, the Gulf of Aden, the Gulf of
Oman, and the Arabian Sea (that portion north of 10+
north latitude and west of 68+ east longitude).

Subtitle C--Travel and Transportation Allowances

SEC. 631. MINIMUM PER DIEM RATE FOR TRAVEL AND TRANSPORTATION ALLOWANCE
FOR TRAVEL PERFORMED UPON A CHANGE OF PERMANENT
STATION AND CERTAIN OTHER TRAVEL.

Section 404(d) of title 37, United States Code, is amended
by adding at the end the following new paragraph:
``(5) Effective January 1, 2003, the per diem rates
established under paragraph (2)(A) for travel performed in
connection with a change of permanent station or for travel
described in paragraph (2) or (3) of subsection (a) shall be
equal to the standard per diem rates established in the Federal
travel regulation for travel within the continental United
States of civilian employees and their dependents, unless the
Secretaries concerned determine that a higher rate for members
is more appropriate.''.

SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EXPENSES ASSOCIATED
WITH OCCUPANCY OF TEMPORARY LODGING INCIDENT TO
REPORTING TO FIRST PERMANENT DUTY STATION.

(a) Inclusion of Officers.--Subsection (a)(2)(C) of section
404a of title 37, United States Code, is amended by striking
``an enlisted member'' and inserting ``a member''.
(b) Increase in Maximum Daily Authorized Rate.--Subsection
(e) of such section is amended by striking ``$110'' and
inserting ``$180''.
(c) Effective Date; Application.--The amendments made by
this section shall take effect on January 1, 2002, and apply
with respect to an order issued on or after that date to a
member of the uniformed services to report to the member's
first permanent duty station.

SEC. 633. REIMBURSEMENT OF MEMBERS FOR MANDATORY PET QUARANTINE FEES
FOR HOUSEHOLD PETS.

(a) Increase in Maximum Reimbursement Amount.--Section
406(a)(1) of title 37, United States Code, is amended in the
last sentence by striking ``$275'' and inserting ``$550''.
(b) Application of Amendment.--The amendment made by
subsection (a) shall apply with respect to the reimbursement of
members of the uniformed services for mandatory pet quarantine
fees incurred in connection with the mandatory quarantine of a
household pet underway on the date of the enactment of this Act
or beginning on or after that date.

SEC. 634. INCREASED WEIGHT ALLOWANCE FOR TRANSPORTATION OF BAGGAGE AND
HOUSEHOLD EFFECTS FOR JUNIOR ENLISTED MEMBERS.

(a) Increased Weight Allowances.--The table in section
406(b)(1)(C) of title 37, United States Code, is amended--
(1) by striking the two footnotes; and
(2) by striking the items relating to pay grade E-1
through E-4 and inserting the following new items:

``E-4......................................... 7,000 8,000
``E-3......................................... 5,000 8,000
``E-2......................................... 5,000 8,000
``E-1......................................... 5,000 8,000''.

(b) Effective Date; Application.--The amendments made by
this section shall take effect on January 1, 2003, and apply
with respect to an order in connection with a change of
temporary or permanent station issued on or after that date.

SEC. 635. ELIGIBILITY OF ADDITIONAL MEMBERS FOR DISLOCATION ALLOWANCE.

(a) Eligibility for Primary Dislocation Allowance.--
Subsection (a) of section 407 of title 37, United States Code,
is amended--
(1) in paragraph (2), by adding at the end the
following new subparagraphs:
``(F) A member whose dependents actually move from
the member's place of residence in connection with the
performance of orders for the member to report to the
member's first permanent duty station if the move--
``(i) is to the permanent duty station or a
designated location; and
``(ii) is an authorized move.
``(G) Each of two members married to each other
who--
``(i) is without dependents;
``(ii) actually moves with the member's
spouse to a new permanent duty station; and
``(iii) is assigned to family quarters of
the United States at or in the vicinity of the
new duty station.''; and
(2) by adding at the end the following new
paragraph:
``(4) If a primary dislocation allowance is payable to two
members described in paragraph (2)(G) who are married to each
other, the amount of the allowance payable to such members
shall be the amount otherwise payable under this subsection to
the member in the higher pay grade, or to either member if both
members are in the same pay grade. The allowance shall be paid
jointly to both members.''.
(b) Conforming Amendment.--Subsection (e) of such section
is amended by inserting ``(except as provided in subsection
(a)(2)(F))'' after ``first duty station''.
(c) Application of Amendments.--The amendments made by this
section shall apply with respect to an order issued on or after
January 1, 2002, in connection with a change of permanent
station or for a member of the uniformed services to report to
the member's first permanent duty station.

SEC. 636. PARTIAL DISLOCATION ALLOWANCE AUTHORIZED FOR HOUSING MOVES
ORDERED FOR GOVERNMENT CONVENIENCE.

(a) Authorization of Partial Dislocation Allowance.--
Section 407 of title 37, United States Code is amended--
(1) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (e) the following
new subsection:
``(f) Partial Dislocation Allowance.--(1) Under regulations
prescribed by the Secretary concerned, a member ordered to
occupy or vacate family housing provided by the United States
to permit the privatization or renovation of housing or for any
other reason (other than pursuant to a permanent change of
station) may be paid a partial dislocation allowance of $500.
``(2) Effective on the same date that the monthly rates of
basic pay for all members are increased under section 1009 of
this title or another provision of law, the Secretary of
Defense shall adjust the rate of the partial dislocation
allowance authorized by this subsection by the percentage equal
to the average percentage increase in the rates of basic pay.
``(3) Subsections (c) and (d) do not apply to the partial
dislocation allowance authorized by this subsection.''.
(b) Application of Amendment.--Subsection (f) of title 37,
United States Code, as added by subsection (a)(2), shall apply
with respect to an order to move for a member of a uniformed
service that is issued on or after the date of the enactment of
this Act.

SEC. 637. ALLOWANCES FOR TRAVEL PERFORMED IN CONNECTION WITH MEMBERS
TAKING AUTHORIZED LEAVE BETWEEN CONSECUTIVE
OVERSEAS TOURS.

Section 411b(a)(1) of title 37, United States Code, is
amended by striking ``, or his designee, or to a place no
farther distant than his home of record''.

SEC. 638. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY MEMBERS TO
ATTEND BURIAL OF A DECEASED MEMBER OF THE UNIFORMED
SERVICES.

(a) Consolidation of Authorities.--Section 411f of title
37, United States Code, is amended to read as follows:

``Sec. 411f. Travel and transportation allowances: transportation for
survivors of deceased member to attend the member's
burial ceremonies

``(a) Allowances Authorized.--(1) The Secretary concerned
may provide round trip travel and transportation allowances to
eligible relatives of a member of the uniformed services who
dies while on active duty or inactive duty in order that the
eligible relatives may attend the burial ceremony of the
deceased member.
``(2) The Secretary concerned may also provide round trip
travel and transportation allowances to an attendant who
accompanies an eligible relative provided travel and
transportation allowances under paragraph (1) for travel to the
burial ceremony if the Secretary concerned determines that--
``(A) the accompanied eligible relative is unable
to travel unattended because of age, physical
condition, or other justifiable reason; and
``(B) there is no other eligible relative of the
deceased member traveling to the burial ceremony who is
eligible for travel and transportation allowances under
paragraph (1) and is qualified to serve as the
attendant.
``(b) Limitations.--(1) Except as provided in paragraphs
(2) and (3), allowances under subsection (a) are limited to
travel and transportation to a location in the United States,
Puerto Rico, and the possessions of the United States and may
not exceed the rates for two days and the time necessary for
such travel.
``(2) If a deceased member was ordered or called to active
duty from a place outside the United States, Puerto Rico, or
the possessions of the United States, the allowances authorized
under subsection (a) may be provided to and from such place and
may not exceed the rates for two days and the time necessary
for such travel.
``(3) If a deceased member is interred in a cemetery
maintained by the American Battle Monuments Commission, the
travel and transportation allowances authorized under
subsection (a) may be provided to and from such cemetery and
may not exceed the rates for two days and the time necessary
for such travel.
``(c) Eligible Relatives.--(1) The following members of the
family of a deceased member of the uniformed services are
eligible for the travel and transportation allowances under
subsection (a)(1):
``(A) The surviving spouse (including a remarried
surviving spouse) of the deceased member.
``(B) The unmarried child or children of the
deceased member referred to in section 401(a)(2) of
this title.
``(C) If no person described in subparagraph (A) or
(B) is provided travel and transportation allowances
under subsection (a)(1), the parent or parents of the
deceased member (as defined in section 401(b)(2) of
this title).
``(2) If no person described in paragraph (1) is provided
travel and transportation allowances under subsection (a)(1),
the travel and transportation allowances may be provided to--
``(A) the person who directs the disposition of the
remains of the deceased member under section 1482(c) of
title 10, or, in the case of a deceased member whose
remains are commingled and buried in a common grave in
a national cemetery, the person who would have been
designated under such section to direct the disposition
of the remains if individual identification had been
made; and
``(B) up to two additional persons closely related
to the deceased member who are selected by the person
referred to in subparagraph (A).
``(d) Expanded Allowances Related to Recovery of Remains
From Vietnam Conflict.--(1) The Secretary of Defense may
provide round trip travel and transportation allowances for the
family of a deceased member of the armed forces who died while
classified as a prisoner of war or as missing in action during
the Vietnam conflict and whose remains are returned to the
United States in order that the family members may attend the
burial ceremony of the deceased member.
``(2) The allowances under paragraph (1) shall include
round trip transportation from the places of residence of such
family members to the burial ceremony and such living expenses
and other allowances as the Secretary of Defense considers
appropriate.
``(3) For purposes of paragraph (1), eligible family
members of the deceased member of the armed forces include the
following:
``(A) The surviving spouse (including a remarried
surviving spouse) of the deceased member.
``(B) The child or children, including children
described in section 401(b)(1) of this title, of the
deceased member.
``(C) The parent or parents of the deceased member
(as defined in section 401(b)(2) of this title).
``(D) If no person described in subparagraph (A),
(B), or (C) is provided travel and transportation
allowances under paragraph (1), any brothers, sisters,
halfbrothers, halfsisters, stepbrothers, and
stepsisters of the deceased member.
``(e) Burial Ceremony Defined.--In this section, the term
`burial ceremony' includes the following:
``(1) An interment of casketed or cremated remains.
``(2) A placement of cremated remains in a
columbarium.
``(3) A memorial service for which reimbursement is
authorized under section 1482(d)(2) of title 10.
``(4) A burial of commingled remains that cannot be
individually identified in a common grave in a national
cemetery.
``(f) Regulations.--The Secretaries concerned shall
prescribe uniform regulations to carry out this section.''.
(b) Repeal of Superseded Laws; Conforming Amendment.--(1)
Section 1482 of title 10, United States Code, is amended by
striking subsection (d) and redesignating subsections (e), (f),
and (g) as subsections (d), (e), and (f), respectively.
(2) Section 1481(a)(9) of such title is amended by striking
``section 1482(g)'' and inserting ``section 1482(f)''.
(3) The Funeral Transportation and Living Expense Benefits
Act of 1974 (Public Law 93-257; 37 U.S.C. 406 note) is
repealed.
(c) Application of Amendment.--Section 411f of title 37,
United States Code, as amended by subsection (a), shall apply
with respect to burial ceremonies of deceased members of the
uniformed services that occur on or after the date of the
enactment of this Act.

SEC. 639. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY UNDER AN EDUCATION
PROGRAM APPROVED BY A UNITED STATES SCHOOL.

(a) Availability of Allowance.--Subsection (a) of section
430 of title 37, United States Code, is amended to read as
follows:
``(a) Availability of Allowance.--(1) Under regulations
prescribed by the Secretary of Defense, a member of a uniformed
service may be paid the allowance set forth in subsection (b)
if the member--
``(A) is assigned to a permanent duty station
outside the continental United States;
``(B) is accompanied by the member's dependents at
or near that duty station (unless the member's only
dependents are in the category of dependent described
in paragraph (2)); and
``(C) has an eligible dependent child described in
paragraph (2).
``(2) An eligible dependent child of a member referred to
in paragraph (1)(C) is a child who--
``(A) is under 23 years of age and unmarried;
``(B) is enrolled in a school in the continental
United States for the purpose of obtaining a formal
education; and
``(C) is attending that school or is participating
in a foreign study program approved by that school and,
pursuant to that foreign study program, is attending a
school outside the United States for a period of not
more than one year.''.
(b) Type of Allowance Authorized.--Subsection (b) of such
section is amended--
(1) by inserting ``Allowance Authorized.--'' after
``(b)'';
(2) in the first sentence of paragraph (1), by
striking ``each unmarried dependent child,'' and all
that follows through ``the school being attended'' and
inserting ``each eligible dependent child of the member
of one annual trip between the school being attended by
that child''; and
(3) by adding at the end the following new
paragraph:
``(3) The transportation allowance paid under paragraph (1)
for an annual trip of an eligible dependent child who is
attending a school outside the United States may not exceed the
transportation allowance that would be paid under this section
for the annual trip of that child between the child's school in
the continental United States and the member's duty station
outside the continental United States and return.''.
(c) Clerical and Conforming Amendments.--Such section is
further amended--
(1) in subsection (c), by inserting ``Use of
Airlift and Sealift Command.--'' after ``(c)'';
(2) in subsection (d)--
(A) by inserting ``Attendance at School in
Alaska or Hawaii.--'' after ``(d)''; and
(B) by striking ``subsection (a)(3)'' and
inserting ``subsection (a)(2)'';
(3) in subsection (e), by inserting ``Exception.--
'' after ``(e)''; and
(4) in subsection (f), by inserting
``Definitions.--'' after ``(f)''.
(d) Application of Amendments.--The amendments made by this
section shall apply with respect to travel described in
subsection (b) of section 430 of title 37, United States Code,
as amended by this section, that commences on or after the date
of the enactment of this Act.

Subtitle D--Retirement and Survivor Benefit Matters

SEC. 641. CONTINGENT AUTHORITY FOR CONCURRENT RECEIPT OF MILITARY
RETIRED PAY AND VETERANS' DISABILITY COMPENSATION
AND ENHANCEMENT OF SPECIAL COMPENSATION AUTHORITY.

(a) Restoration of Retired Pay Benefits.--Chapter 71 of
title 10, United States Code, is amended by adding at the end
the following new section:

``Sec. 1414. Members eligible for retired pay who have service-
connected disabilities: payment of retired pay and
veterans' disability compensation; contingent
authority

``(a) Payment of Both Retired Pay and Compensation.--
Subject to subsection (b), a member or former member of the
uniformed services who is entitled to retired pay (other than
as specified in subsection (c)) and who is also entitled to
veterans' disability compensation is entitled to be paid both
without regard to sections 5304 and 5305 of title 38, subject
to the enactment of qualifying offsetting legislation as
specified in subsection (f).
``(b) Special Rule for Chapter 61 Career Retirees.--The
retired pay of a member retired under chapter 61 of this title
with 20 years or more of service otherwise creditable under
section 1405 of this title at the time of the member's
retirement is subject to reduction under sections 5304 and 5305
of title 38, but only to the extent that the amount of the
member's retired pay under chapter 61 of this title exceeds the
amount of retired pay to which the member would have been
entitled under any other provision of law based upon the
member's service in the uniformed services if the member had
not been retired under chapter 61 of this title.
``(c) Exception.--Subsection (a) does not apply to a member
retired under chapter 61 of this title with less than 20 years
of service otherwise creditable under section 1405 of this
title at the time of the member's retirement.
``(d) Definitions.--In this section:
``(1) The term `retired pay' includes retainer pay,
emergency officers' retirement pay, and naval pension.
``(2) The term `veterans' disability compensation'
has the meaning given the term `compensation' in
section 101(12) of title 38.
``(e) Effective Date.--If qualifying offsetting legislation
(as defined in subsection (f)) is enacted, the provisions of
subsection (a) shall take effect on--
``(1) the first day of the first month beginning
after the date of the enactment of such qualifying
offsetting legislation; or
``(2) the first day of the fiscal year that begins
in the calendar year in which such legislation is
enacted, if that date is later than the date specified
in paragraph (1).
``(f) Effectiveness Contingent on Enactment of Offsetting
Legislation.--(1) The provisions of subsection (a) shall be
effective only if--
``(A) the President, in the budget for any fiscal
year, proposes the enactment of legislation that, if
enacted, would be qualifying offsetting legislation;
and
``(B) after that budget is submitted to Congress,
there is enacted qualifying offsetting legislation.
``(2) In this subsection:
``(A) The term `qualifying offsetting legislation'
means legislation (other than an appropriations Act)
that includes provisions that--
``(i) offset fully the increased outlays to
be made by reason of the provisions of
subsection (a) for each of the first 10 fiscal
years beginning after the date of the enactment
of such legislation;
``(ii) expressly state that they are
enacted for the purpose of the offset described
in clause (i); and
``(iii) are included in full on the PayGo
scorecard.
``(B) The term `PayGo scorecard' means the
estimates that are made by the Director of the
Congressional Budget Office and the Director of the
Office of Management and Budget under section 252(d) of
the Balanced Budget and Emergency Deficit Control Act
of 1985 (2 U.S.C. 902(d)) with respect to the ten
fiscal years following the date of the enactment of the
legislation that is qualifying offsetting legislation
for purposes of this section.''.
(b) Conforming Termination of Special Compensation
Program.--Section 1413(a) of such title is amended by adding at
the end the following new sentence: ``If the provisions of
subsection (a) of section 1414 of this title become effective
in accordance with subsection (f) of that section, payments
under this section shall be terminated effective as of the
month beginning on the effective date specified in subsection
(e) of that section.''.
(c) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``1414. Members eligible for retired pay who have service-connected
disabilities: payment of retired pay and veterans' disability
compensation; contingent authority.''.

(d) Prohibition of Retroactive Benefits.--If the provisions
of subsection (a) of section 1414 of title 10, United States
Code, becomes effective in accordance with subsection (f) of
that section, no benefit may be paid to any person by reason of
those provisions for any period before the effective date
specified in subsection (e) of that section.
(e) Enhancement of Special Compensation Authority.--(1)
Subsection (b) of section 1413 of title 10, United States Code,
is amended by striking paragraphs (1), (2), and (3) and
inserting the following:
``(1) For payments for months beginning with
February 2002 and ending with December 2002, the
following:
``(A) For any month for which the retiree
has a qualifying service-connected disability
rated as total, $300.
``(B) For any month for which the retiree
has a qualifying service-connected disability
rated as 90 percent, $200.
``(C) For any month for which the retiree
has a qualifying service-connected disability
rated as 80 percent or 70 percent, $100.
``(D) For any month for which the retiree
has a qualifying service-connected disability
rated as 60 percent, $50.
``(2) For payments for months beginning with
January 2003 and ending with September 2004, the
following:
``(A) For any month for which the retiree
has a qualifying service-connected disability
rated as total, $325.
``(B) For any month for which the retiree
has a qualifying service-connected disability
rated as 90 percent, $225.
``(C) For any month for which the retiree
has a qualifying service-connected disability
rated as 80 percent, $125.
``(D) For any month for which the retiree
has a qualifying service-connected disability
rated as 70 percent, $100.
``(E) For any month for which the retiree
has a qualifying service-connected disability
rated as 60 percent, $50.
``(3) For payments for months after September 2004,
the following:
``(A) For any month for which the retiree
has a qualifying service-connected disability
rated as total, $350.
``(B) For any month for which the retiree
has a qualifying service-connected disability
rated as 90 percent, $250.
``(C) For any month for which the retiree
has a qualifying service-connected disability
rated as 80 percent, $150.
``(D) For any month for which the retiree
has a qualifying service-connected disability
rated as 70 percent, $125.
``(E) For any month for which the retiree
has a qualifying service-connected disability
rated as 60 percent, $50.''.
(2) Subsection (d)(2) of such section is amended by
striking ``70 percent'' and inserting ``60 percent''.
(3) The amendments made by this subsection shall take
effect on February 1, 2002.

SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING SPOUSES OF
MEMBERS WHO DIE WHILE ON ACTIVE DUTY AND NOT
ELIGIBLE FOR RETIREMENT.

(a) Surviving Spouse Annuity.--Paragraph (1) of section
1448(d) of title 10, United States Code, is amended to read as
follows:
``(1) Surviving spouse annuity.--The Secretary
concerned shall pay an annuity under this subchapter to
the surviving spouse of--
``(A) a member who dies while on active
duty after--
``(i) becoming eligible to receive
retired pay;
``(ii) qualifying for retired pay
except that the member has not applied
for or been granted that pay; or
``(iii) completing 20 years of
active service but before the member is
eligible to retire as a commissioned
officer because the member has not
completed 10 years of active
commissioned service; or
``(B) a member not described in
subparagraph (A) who dies in line of duty while
on active duty.''.
(b) Computation of Annuity.--Section 1451(c)(1) of such
title is amended--
(1) in subparagraph (A)--
(A) by striking ``based upon his years of
active service when he died.'' and inserting
``when he died determined as follows:
``(i) In the case of an annuity
provided under section 1448(d) of this
title (other than in a case covered by
clause (ii)), such retired pay shall be
computed as if the member had been
retired under section 1201 of this
title on the date of the member's death
with a disability rated as total.
``(ii) In the case of an annuity
provided under section 1448(d)(1)(A) of
this title by reason of the death of a
member not in line of duty, such
retired pay shall be computed based
upon the member's years of active
service when he died.
``(iii) In the case of an annuity
provided under section 1448(f) of this
title, such retired pay shall be
computed based upon the member or
former member's years of active service
when he died computed under section
12733 of this title.''; and
(2) in subparagraph (B)(i), by striking ``if the
member or former member'' and all that follows and
inserting ``as determined under subparagraph (A).''.
(c) Conforming Amendments.--(1) The heading for subsection
(d) of section 1448 of such title is amended by striking
``Retirement-Eligible''.
(2) Subsection (c)(3) of section 1451 of such title is
amended by striking ``1448(d)(1)(B) or 1448(d)(1)(C)'' and
inserting ``clause (ii) or (iii) of section 1448(d)(1)(A)''.
(d) Effective Date.--The amendments made by this section
shall take effect as of September 10, 2001, and shall apply
with respect to deaths of members of the Armed Forces occurring
on or after that date.

Subtitle E--Other Matters

SEC. 651. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60 DAYS ACCRUED BY
MEMBERS OF RESERVE COMPONENTS ON ACTIVE DUTY FOR
ONE YEAR OR LESS.

(a) Eligibility.--Section 501(b)(5) of title 37, United
States Code, is amended by--
(1) striking ``or'' at the end of subparagraph (B);
(2) striking the period at the end of subparagraph
(C) and inserting ``; or''; and
(3) adding at the end the following new
subparagraph:
``(D) by a member of a reserve component while
serving on active duty, full-time National Guard duty,
or active duty for training for a period of more than
30 days but not in excess of 365 days.''.
(b) Application of Amendment.--Subparagraph (D) of section
501(b)(5) of title 37, United States Code, as added by
subsection (a)(3), shall apply with respect to periods of
active duty beginning on or after October 1, 2001.

SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES OF
MEMBERS OF THE ARMED FORCES.

(a) Authority.--During fiscal year 2002, the Secretary of
Defense may provide assistance for families of members of the
Armed Forces serving on active duty in order to ensure that the
children of such members obtain needed child care, education,
and other youth services.
(b) Primary Purpose of Assistance.--The assistance
authorized by this section should be directed primarily toward
providing needed family support, including child care,
education, and other youth services, for children of members of
the Armed Forces who are deployed, assigned to duty, or ordered
to active duty in connection with the contingency operation
known as Operation Enduring Freedom.

SEC. 653. AUTHORIZATION OF TRANSITIONAL COMPENSATION AND COMMISSARY AND
EXCHANGE BENEFITS FOR DEPENDENTS OF COMMISSIONED
OFFICERS OF THE PUBLIC HEALTH SERVICE AND THE
NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION WHO
ARE SEPARATED FOR DEPENDENT ABUSE.

(a) Commissioned Officers of the Public Health Service.--
Section 221(a) of the Public Health Service Act (42 U.S.C.
213a(a)) is amended by adding at the end the following new
paragraph:
``(17) Section 1059, Transitional compensation and
commissary and exchange benefits for dependents of
members separated for dependent abuse.''.
(b) Commissioned Officers of the National Oceanic and
Atmospheric Administration.--Section 3(a) of the Act entitled
``An Act to revise, codify, and enact into law, title 10 of the
United States Code, entitled `Armed Forces', and title 32 of
the United States Code, entitled `National Guard' '', approved
August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding at
the end the following new paragraph:
``(17) Section 1059, Transitional compensation and
commissary and exchange benefits for dependents of
members separated for dependent abuse.''.

SEC. 654. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE UNDER
MONTGOMERY GI BILL BY MEMBERS OF THE ARMED FORCES
WITH CRITICAL MILITARY SKILLS.

(a) Authority To Transfer to Family Members.--(1)
Subchapter II of chapter 30 of title 38, United States Code, is
amended by adding at the end the following new section:

``Sec. 3020. Transfer of entitlement to basic educational assistance:
members of the Armed Forces with critical military
skills

``(a) In General.--Subject to the provisions of this
section, each Secretary concerned may, for the purpose of
enhancing recruitment and retention of members of the Armed
Forces with critical military skills and at such Secretary's
sole discretion, permit an individual described in subsection
(b) who is entitled to basic educational assistance under this
subchapter to elect to transfer to one or more of the
dependents specified in subsection (c) a portion of such
individual's entitlement to such assistance, subject to the
limitation under subsection (d).
``(b) Eligible Individuals.--An individual referred to in
subsection (a) is any member of the Armed Forces who, at the
time of the approval by the Secretary concerned of the member's
request to transfer entitlement to basic educational assistance
under this section--
``(1) has completed six years of service in the
Armed Forces;
``(2) either--
``(A) has a critical military skill
designated by the Secretary concerned for
purposes of this section; or
``(B) is in a military specialty designated
by the Secretary concerned for purposes of this
section as requiring critical military skills;
and
``(3) enters into an agreement to serve at least
four more years as a member of the Armed Forces.
``(c) Eligible Dependents.--An individual approved to
transfer an entitlement to basic educational assistance under
this section may transfer the individual's entitlement as
follows:
``(1) To the individual's spouse.
``(2) To one or more of the individual's children.
``(3) To a combination of the individuals referred
to in paragraphs (1) and (2).
``(d) Limitation on Months of Transfer.--The total number
of months of entitlement transferred by an individual under
this section may not exceed 18 months.
``(e) Designation of Transferee.--An individual
transferring an entitlement to basic educational assistance
under this section shall--
``(1) designate the dependent or dependents to whom
such entitlement is being transferred;
``(2) designate the number of months of such
entitlement to be transferred to each such dependent;
and
``(3) specify the period for which the transfer
shall be effective for each dependent designated under
paragraph (1).
``(f) Time for Transfer; Revocation and Modification.--(1)
Subject to the time limitation for use of entitlement under
section 3031 of this title, an individual approved to transfer
entitlement to basic educational assistance under this section
may transfer such entitlement at any time after the approval of
the individual's request to transfer such entitlement without
regard to whether the individual is a member of the Armed
Forces when the transfer is executed.
``(2)(A) An individual transferring entitlement under this
section may modify or revoke at any time the transfer of any
unused portion of the entitlement so transferred.
``(B) The modification or revocation of the transfer of
entitlement under this paragraph shall be made by the submittal
of written notice of the action to both the Secretary concerned
and the Secretary of Veterans Affairs.
``(g) Commencement of Use.--A dependent to whom entitlement
to basic educational assistance is transferred under this
section may not commence the use of the transferred entitlement
until--
``(1) in the case of entitlement transferred to a
spouse, the completion by the individual making the
transfer of six years of service in the Armed Forces;
or
``(2) in the case of entitlement transferred to a
child, both--
``(A) the completion by the individual
making the transfer of 10 years of service in
the Armed Forces; and
``(B) either--
``(i) the completion by the child
of the requirements of a secondary
school diploma (or equivalency
certificate); or
``(ii) the attainment by the child
of 18 years of age.
``(h) Additional Administrative Matters.--(1) The use of
any entitlement to basic educational assistance transferred
under this section shall be charged against the entitlement of
the individual making the transfer at the rate of one month for
each month of transferred entitlement that is used.
``(2) Except as provided under subsection (e)(2) and
subject to paragraphs (4) and (5), a dependent to whom
entitlement is transferred under this section is entitled to
basic educational assistance under this subchapter in the same
manner and at the same rate as the individual from whom the
entitlement was transferred.
``(3) The death of an individual transferring an
entitlement under this section shall not affect the use of the
entitlement by the dependent to whom the entitlement is
transferred.
``(4) Notwithstanding section 3031 of this title, a child
to whom entitlement is transferred under this section may not
use any entitlement so transferred after attaining the age of
26 years.
``(5) The administrative provisions of this chapter
(including the provisions set forth in section 3034(a)(1) of
this title) shall apply to the use of entitlement transferred
under this section, except that the dependent to whom the
entitlement is transferred shall be treated as the eligible
veteran for purposes of such provisions.
``(6) The purposes for which a dependent to whom
entitlement is transferred under this section may use such
entitlement shall include the pursuit and completion of the
requirements of a secondary school diploma (or equivalency
certificate).
``(i) Overpayment.--(1) In the event of an overpayment of
basic educational assistance with respect to a dependent to
whom entitlement is transferred under this section, the
dependent and the individual making the transfer shall be
jointly and severally liable to the United States for the
amount of the overpayment for purposes of section 3685 of this
title.
``(2) Except as provided in paragraph (3), if an individual
transferring entitlement under this section fails to complete
the service agreed to by the individual under subsection (b)(3)
in accordance with the terms of the agreement of the individual
under that subsection, the amount of any transferred
entitlement under this section that is used by a dependent of
the individual as of the date of such failure shall be treated
as an overpayment of basic educational assistance under
paragraph (1).
``(3) Paragraph (2) shall not apply in the case of an
individual who fails to complete service agreed to by the
individual--
``(A) by reason of the death of the individual; or
``(B) for a reason referred to in section
3011(a)(1)(A)(ii)(I) of this title.
``(j) Approvals of Transfer Subject to Availability of
Appropriations.--The Secretary concerned may approve transfers
of entitlement to basic educational assistance under this
section in a fiscal year only to the extent that appropriations
for military personnel are available in that fiscal year for
purposes of making deposits in the Department of Defense
Education Benefits Fund under section 2006 of title 10 in that
fiscal year to cover the present value of future benefits
payable from the Fund for the Department of Defense portion of
payments of basic educational assistance attributable to
increased usage of benefits as a result of such transfers of
entitlement in that fiscal year.
``(k) Regulations.--The Secretary of Defense shall
prescribe regulations for purposes of this section. Such
regulations shall specify the manner and effect of an election
to modify or revoke a transfer of entitlement under subsection
(f)(2) and shall specify the manner of the applicability of the
administrative provisions referred to in subsection (h)(5) to a
dependent to whom entitlement is transferred under this
section.
``(l) Annual Report.--(1) Not later than January 31 each
year (beginning in 2003), the Secretary of Defense shall submit
to the Committees on Armed Services and the Committees on
Veterans' Affairs of the Senate and House of Representatives a
report on the transfers of entitlement to basic educational
assistance under this section that were approved by each
Secretary concerned during the preceding fiscal year.
``(2) Each report shall set forth--
``(A) the number of transfers of entitlement under
this section that were approved by such Secretary
during the preceding fiscal year; or
``(B) if no transfers of entitlement under this
section were approved by such Secretary during that
fiscal year, a justification for such Secretary's
decision not to approve any such transfers of
entitlement during that fiscal year.
``(m) Secretary Concerned Defined.--Notwithstanding section
101(25) of this title, in this section, the term `Secretary
concerned' means--
``(1) the Secretary of the Army with respect to
matters concerning the Army;
``(2) the Secretary of the Navy with respect to
matters concerning the Navy or the Marine Corps;
``(3) the Secretary of the Air Force with respect
to matters concerning the Air Force; and
``(4) the Secretary of the Defense with respect to
matters concerning the Coast Guard, or the Secretary of
Transportation when it is not operating as a service in
the Navy.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 3019
the following new item:

``3020. Transfer of entitlement to basic educational assistance: members
of the Armed Forces with critical military skills.''.

(b) Treatment Under Department of Defense Education
Benefits Fund.--Section 2006(b)(2) of title 10, United States
Code, is amended by adding at the end the following new
subparagraph:
``(D) The present value of future benefits
payable from the Fund for the Department of
Defense portion of payments of educational
assistance under subchapter II of chapter 30 of
title 38 attributable to increased usage of
benefits as a result of transfers of
entitlement to basic educational assistance
under section 3020 of that title during such
period.''.
(c) Plan for Implementation.--Not later than June 30, 2002,
the Secretary of Defense shall submit to Congress a report
describing the manner in which the Secretaries of the military
departments and the Secretary of Transportation propose to
exercise the authority granted by section 3020 of title 38,
United States Code, as added by subsection (a). The report
shall include the regulations prescribed under subsection (k)
of that section for purposes of the exercise of the authority.
(d) Funding for Fiscal Year 2002.--Of the amount authorized
to be appropriated to the Department of Defense for military
personnel for fiscal year 2002 by section 421, $30,000,000 may
be available in fiscal year 2002 for deposit into the
Department of Defense Education Benefits Fund under section
2006 of title 10, United States Code, for purposes of covering
payments of amounts under subparagraph (D) of section
2006(b)(2) of such title (as added by subsection (b)), as a
result of transfers of entitlement to basic educational
assistance under section 3020 of title 38, United States Code
(as added by subsection (a)).

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--TRICARE Program Improvements

Subtitle B--Senior Health Care

Sec. 711. Clarifications and improvements regarding the Department of
Defense Medicare-Eligible Retiree Health Care Fund.

Subtitle C--Studies and Reports

Subtitle D--Other Matters

Subtitle A--TRICARE Program Improvements

SEC. 701. SUB-ACUTE AND LONG-TERM CARE PROGRAM REFORM.

(a) In General.--(1) Chapter 55 of title 10, United States
Code, is amended by inserting after section 1074i the following
new section:

``Sec. 1074j. Sub-acute care program

``(a) Establishment.--The Secretary of Defense shall
establish an effective, efficient, and integrated sub-acute
care benefits program under this chapter (hereinafter referred
to in this section as the `program'). Except as otherwise
provided in this section, the types of health care authorized
under the program shall be the same as those provided under
section 1079 of this title. The Secretary, after consultation
with the other administering Secretaries, shall promulgate
regulations to carry out this section.
``(b) Benefits.--(1) The program shall include a uniform
skilled nursing facility benefit that shall be provided in the
manner and under the conditions described in section 1861(h)
and (i) of the Social Security Act (42 U.S.C. 1395x(h) and
(i)), except that the limitation on the number of days of
coverage under section 1812(a) and (b) of such Act (42 U.S.C.
1395d(a) and (b)) shall not be applicable under the program.
Skilled nursing facility care for each spell of illness shall
continue to be provided for as long as medically necessary and
appropriate.
``(2) In this subsection:
``(A) The term `skilled nursing facility' has the
meaning given such term in section 1819(a) of the
Social Security Act (42 U.S.C. 1395i-3(a)).
``(B) The term `spell of illness' has the meaning
given such term in section 1861(a) of such Act (42
U.S.C. 1395x(a)).
``(3) The program shall include a comprehensive, part-time
or intermittent home health care benefit that shall be provided
in the manner and under the conditions described in section
1861(m) of the Social Security Act (42 U.S.C. 1395x(m)).''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
1074i the following new item:

``1074j. Sub-acute care program.''.

(b) Extended Benefits for Disabled Beneficiaries.--Section
1079 of title 10, United States Code, is amended by striking
subsections (d), (e), and (f) and inserting the following new
subsections:
``(d)(1) The Secretary of Defense shall establish a program
to provide extended benefits for eligible dependents, which may
include the provision of comprehensive health care services,
including case management services, to assist in the reduction
of the disabling effects of a qualifying condition of an
eligible dependent. Registration shall be required to receive
the extended benefits.
``(2) The Secretary of Defense, after consultation with the
other administering Secretaries, shall promulgate regulations
to carry out this subsection.
``(3) In this subsection:
``(A) The term `eligible dependent' means a
dependent of a member of the uniformed services on
active duty for a period of more than 30 days, as
described in subparagraph (A), (D), or (I) of section
1072(2) of this title, who has a qualifying condition.
``(B) The term `qualifying condition' means the
condition of a dependent who is moderately or severely
mentally retarded, has a serious physical disability,
or has an extraordinary physical or psychological
condition.
``(e) Extended benefits for eligible dependents under
subsection (d) may include comprehensive health care services
(including services necessary to maintain, or minimize or
prevent deterioration of, function of the patient) and case
management services with respect to the qualifying condition of
such a dependent, and include, to the extent such benefits are
not provided under provisions of this chapter other than under
this section, the following:
``(1) Diagnosis.
``(2) Inpatient, outpatient, and comprehensive home
health care supplies and services which may include
cost effective and medically appropriate services other
than part-time or intermittent services (within the
meaning of such terms as used in the second sentence of
section 1861(m) of the Social Security Act).
``(3) Training, rehabilitation, special education,
and assistive technology devices.
``(4) Institutional care in private nonprofit,
public, and State institutions and facilities and, if
appropriate, transportation to and from such
institutions and facilities.
``(5) Custodial care, notwithstanding the
prohibition in section 1077(b)(1) of this title.
``(6) Respite care for the primary caregiver of the
eligible dependent.
``(7) Such other services and supplies as
determined appropriate by the Secretary,
notwithstanding the limitations in subsection (a)(13).
``(f)(1) Members shall be required to share in the cost of
any benefits provided to their dependents under subsection (d)
as follows:
``(A) Members in the lowest enlisted pay grade
shall be required to pay the first $25 incurred each
month, and members in the highest commissioned pay
grade shall be required to pay the first $250 incurred
each month. The amounts to be paid by members in all
other pay grades shall be determined under regulations
to be prescribed by the Secretary of Defense in
consultation with the administering Secretaries.
``(B) A member who has more than one dependent
incurring expenses in a given month under a plan
covered by subsection (d) shall not be required to pay
an amount greater than would be required if the member
had only one such dependent.
``(2) In the case of extended benefits provided under
paragraph (3) or (4) of subsection (e) to a dependent of a
member of the uniformed services--
``(A) the Government's share of the total cost of
providing such benefits in any month shall not exceed
$2,500, except for costs that a member is exempt from
paying under paragraph (3); and
``(B) the member shall pay (in addition to any
amount payable under paragraph (1)) the amount, if any,
by which the amount of such total cost for the month
exceeds the Government's maximum share under
subparagraph (A).
``(3) A member of the uniformed services who incurs
expenses under paragraph (2) for a month for more than one
dependent shall not be required to pay for the month under
subparagraph (B) of that paragraph an amount greater than the
amount the member would otherwise be required to pay under that
subparagraph for the month if the member were incurring
expenses under that subparagraph for only one dependent.
``(4) To qualify for extended benefits under paragraph (3)
or (4) of subsection (e), a dependent of a member of the
uniformed services shall be required to use public facilities
to the extent such facilities are available and adequate, as
determined under joint regulations of the administering
Secretaries.
``(5) The Secretary of Defense, in consultation with the
other administering Secretaries, shall prescribe regulations to
carry out this subsection.''.
(c) Definitions of Custodial Care and Domiciliary Care.--
Section 1072 of title 10, United States Code, is amended by
adding at the end the following new paragraphs:
``(8) The term `custodial care' means treatment or
services, regardless of who recommends such treatment
or services or where such treatment or services are
provided, that--
``(A) can be rendered safely and reasonably
by a person who is not medically skilled; or
``(B) is or are designed mainly to help the
patient with the activities of daily living.
``(9) The term `domiciliary care' means care
provided to a patient in an institution or homelike
environment because--
``(A) providing support for the activities
of daily living in the home is not available or
is unsuitable; or
``(B) members of the patient's family are
unwilling to provide the care.''.
(d) Continuation of Individual Case Management Services for
Certain Eligible Beneficiaries.--(1) Notwithstanding the
termination of the Individual Case Management Program by
subsection (g), the Secretary of Defense shall, in any case in
which the Secretary makes the determination described in
paragraph (2), continue to provide payment as if such program
were in effect for home health care or custodial care services
provided to an eligible beneficiary that would otherwise be
excluded from coverage under regulations implementing chapter
55 of title 10, United States Code.
(2) The determination referred to in paragraph (1) is a
determination that discontinuation of payment for services not
otherwise provided under such chapter would result in the
provision of services inadequate to meet the needs of the
eligible beneficiary and would be unjust to such beneficiary.
(3) For purposes of this subsection, ``eligible
beneficiary'' means a covered beneficiary (as that term is
defined in section 1072 of title 10, United States Code) who,
before the effective date of this section, was provided
custodial care services under the Individual Case Management
Program for which the Secretary provided payment.
(e) Report on Initiatives Regarding Long-Term Care.--The
Secretary of Defense shall, not later than April 1, 2002,
submit to Congress a report on the feasibility and desirability
of establishing new initiatives, taking into account chapter 90
of title 5, United States Code, to improve the availability of
long-term care for members and retired members of the uniformed
services and their families.
(f) Reference in Title 10 to Long-Term Care Program in
Title 5.--(1) Chapter 55 of title 10, United States Code, is
amended by inserting after section 1074j (as added by
subsection (a)) the following new section:

``Sec. 1074k. Long-term care insurance

``Provisions regarding long-term care insurance for members
and certain former members of the uniformed services and their
families are set forth in chapter 90 of title 5.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
1074j (as added by subsection (a)) the following new item:

``1074k. Long-term care insurance.''.

(g) Conforming Amendments.--(1) The following provisions of
law are repealed:
(A) Section 703 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 682; 10 U.S.C. 1077 note).
(B) Section 8118 of the Department of Defense
Appropriations Act, 2000 (Public Law 106-79; 113 Stat.
1260).
(C) Section 8100 of the Department of Defense
Appropriations Act, 2001 (Public Law 106-259; 114 Stat.
696).
(2) Section 1079 of title 10, United States Code, is
amended in subsection (a) by striking paragraph (17).

SEC. 702. PROSTHETICS AND HEARING AIDS.

Section 1077 of title 10 United States Code, is amended--
(1) in subsection (a), by adding at the end the
following:
``(16) A hearing aid, but only for a dependent of a
member of the uniformed services on active duty and
only if the dependent has a profound hearing loss, as
determined under standards prescribed in regulations by
the Secretary of Defense in consultation with the
administering Secretaries.'';
(2) in subsection (b)(2), by striking ``Hearing
aids, orthopedic footwear,'' and inserting ``Orthopedic
footwear''; and
(3) by adding at the end the following new
subsection:
``(e)(1) Authority to provide a prosthetic device under
subsection (a)(15) includes authority to provide the following:
``(A) Any accessory or item of supply that is used
in conjunction with the device for the purpose of
achieving therapeutic benefit and proper functioning.
``(B) Services necessary to train the recipient of
the device in the use of the device.
``(C) Repair of the device for normal wear and tear
or damage.
``(D) Replacement of the device if the device is
lost or irreparably damaged or the cost of repair would
exceed 60 percent of the cost of replacement.
``(2) An augmentative communication device may be provided
as a voice prosthesis under subsection (a)(15).
``(3) A prosthetic device customized for a patient may be
provided under this section only by a prosthetic practitioner
who is qualified to customize the device, as determined under
regulations prescribed by the Secretary of Defense in
consultation with the administering Secretaries.''.

SEC. 703. DURABLE MEDICAL EQUIPMENT.

(a) Items Authorized.--Section 1077 of title 10, United
States Code, as amended by section 702, is further amended--
(1) in subsection (a)(12), by striking ``such as
wheelchairs, iron lungs, and hospital beds'' and
inserting ``which''; and
(2) by adding at the end the following new
subsection:
``(f)(1) Items that may be provided to a patient under
subsection (a)(12) include the following:
``(A) Any durable medical equipment that can
improve, restore, or maintain the function of a
malformed, diseased, or injured body part, or can
otherwise minimize or prevent the deterioration of the
patient's function or condition.
``(B) Any durable medical equipment that can
maximize the patient's function consistent with the
patient's physiological or medical needs.
``(C) Wheelchairs.
``(D) Iron lungs.
``(E) Hospital beds.
``(2) In addition to the authority to provide durable
medical equipment under subsection (a)(12), any customization
of equipment owned by the patient that is durable medical
equipment authorized to be provided to the patient under this
section or section 1079(a)(5) of this title, and any accessory
or item of supply for any such equipment, may be provided to
the patient if the customization, accessory, or item of supply
is essential for--
``(A) achieving therapeutic benefit for the
patient;
``(B) making the equipment serviceable; or
``(C) otherwise assuring the proper functioning of
the equipment.''.
(b) Provision of Items on Rental Basis.--Paragraph (5) of
section 1079(a) of such title is amended to read as follows:
``(5) Durable equipment provided under this section
may be provided on a rental basis.''.

SEC. 704. REHABILITATIVE THERAPY.

Section 1077(a) of title 10, United States Code, as amended
by sections 702 and 703, is further amended by inserting after
paragraph (16) the following new paragraph:
``(17) Any rehabilitative therapy to improve,
restore, or maintain function, or to minimize or
prevent deterioration of function, of a patient when
prescribed by a physician.''.

SEC. 705. REPORT ON MENTAL HEALTH BENEFITS.

(a) Requirement for Study.--The Secretary of Defense shall
carry out a study to determine the adequacy of the scope and
availability of outpatient mental health benefits provided for
members of the Armed Forces and covered beneficiaries under the
TRICARE program.
(b) Report.--Not later than March 31, 2002, the Secretary
shall submit to the Committees on Armed Services of the Senate
and the House of Representatives a report on the study,
including the conclusions and any recommendations for
legislation that the Secretary considers appropriate.

SEC. 706. CLARIFICATION OF ELIGIBILITY FOR REIMBURSEMENT OF TRAVEL
EXPENSES OF ADULT ACCOMPANYING PATIENT IN TRAVEL
FOR SPECIALTY CARE.

Section 1074i of title 10, United States Code, is amended
by inserting before the period at the end the following: ``and,
when accompaniment by an adult is necessary, for a parent or
guardian of the covered beneficiary or another member of the
covered beneficiary's family who is at least 21 years of age''.

SEC. 707. TRICARE PROGRAM LIMITATIONS ON PAYMENT RATES FOR
INSTITUTIONAL HEALTH CARE PROVIDERS AND ON BALANCE
BILLING BY INSTITUTIONAL AND NONINSTITUTIONAL
HEALTH CARE PROVIDERS.

(a) Institutional Providers.--Section 1079(j) of title 10,
United States Code, is amended--
(1) in paragraph (2)(A)--
(A) by striking ``(A)''; and
(B) by striking ``may be determined under
joint regulations'' and inserting ``shall be
determined under joint regulations'';
(2) by redesignating subparagraph (B) of paragraph
(2) as paragraph (4), and, in such paragraph, as so
redesignated, by striking ``subparagraph (A),'' and
inserting ``this subsection,''; and
(3) by inserting before paragraph (4), as
redesignated by paragraph (2), the following new
paragraph (3):
``(3) A contract for a plan covered by this section shall
include a clause that prohibits each provider of services under
the plan from billing any person covered by the plan for any
balance of charges for services in excess of the amount paid
for those services under the joint regulations referred to in
paragraph (2), except for any unpaid amounts of deductibles or
copayments that are payable directly to the provider by the
person.''.
(b) Noninstitutional Providers.--Section 1079(h)(4) of such
title is amended--
(1) by inserting ``(A)'' after ``(4)''; and
(2) by adding at the end the following new
subparagraph:
``(B) The regulations shall include a restriction that
prohibits an individual health care professional (or other
noninstitutional health care provider) from billing a
beneficiary for services for more than the amount that is equal
to--
``(i) the excess of the limiting charge (as defined
in section 1848(g)(2) of the Social Security Act (42
U.S.C. 1395w-4(g)(2))) that would be applicable if the
services had been provided by the professional (or
other provider) as an individual health care
professional (or other noninstitutional health care
provider) on a nonassignment-related basis under part B
of title XVIII of such Act over the amount that is
payable by the United States for those services under
this subsection, plus
``(ii) any unpaid amounts of deductibles or
copayments that are payable directly to the
professional (or other provider) by the beneficiary.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 90 days after the date of
the enactment of this Act.

SEC. 708. IMPROVEMENTS IN ADMINISTRATION OF THE TRICARE PROGRAM.

(a) Flexibility in Contracting.--(1) During the one-year
period following the date of the enactment of this Act, section
1072(7) of title 10, United States Code, shall be deemed to be
amended by striking ``the competitive selection of contractors
to financially underwrite''.
(2) The terms and conditions of any contract to provide
health care services under the TRICARE program entered into
during the period described in paragraph (1) shall not be
considered to be modified or terminated as a result of the
termination of such period.
(b) Reduction of Contract Start-Up Time.--Section 1095c(b)
of such title is amended--
(1) in paragraph (1)--
(A) by striking ``The'' and inserting
``Except as provided in paragraph (3), the'';
and
(B) by striking ``contract.'' and all that
follows through ``as soon as practicable after
the award of the''; and
(2) by adding at the end the following new
paragraph:
``(3) The Secretary may reduce the nine-month start-up
period required under paragraph (1) if--
``(A) the Secretary--
``(i) determines that a shorter period is
sufficient to ensure effective implementation
of all contract requirements; and
``(ii) submits notification to the
Committees on Armed Services of the House of
Representatives and the Senate of the
Secretary's intent to reduce the nine-month
start-up period; and
``(B) 60 days have elapsed since the date of such
notification.''.

Subtitle B--Senior Health Care

SEC. 711. CLARIFICATIONS AND IMPROVEMENTS REGARDING THE DEPARTMENT OF
DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.

(a) Clarification Regarding Coverage.--Subsection (b) of
section 1111 of title 10, United States Code, is amended to
read as follows:
``(b) In this chapter:
``(1) The term `uniformed services retiree health
care programs' means the provisions of this title or
any other provision of law creating an entitlement to
or eligibility for health care for a member or former
member of a participating uniformed service who is
entitled to retired or retainer pay, and an eligible
dependent under such program.
``(2) The term `eligible dependent' means a
dependent described in section 1076(a)(2) (other than a
dependent of a member on active duty), 1076(b),
1086(c)(2), or 1086(c)(3) of this title.
``(3) The term `medicare-eligible', with respect to
any person, means entitled to benefits under part A of
title XVIII of the Social Security Act (42 U.S.C. 1395c
et seq.).
``(4) The term `participating uniformed service'
means the Army, Navy, Air Force, and Marine Corps, and
any other uniformed service that is covered by an
agreement entered into under subsection (c).''.
(b) Participation of Other Uniformed Services.--(1) Section
1111 of such title is further amended by adding at the end the
following new subsection:
``(c) The Secretary of Defense may enter into an agreement
with any other administering Secretary (as defined in section
1072(3) of this title) for participation in the Fund by a
uniformed service under the jurisdiction of that Secretary. Any
such agreement shall require that Secretary to determine
contributions to the Fund on behalf of the members of the
uniformed service under the jurisdiction of that Secretary in a
manner comparable to the determination with respect to
contributions to the Fund made by the Secretary of Defense
under section 1116 of this title, and such administering
Secretary may make such contributions.''.
(2) Section 1112 of such title is amended by adding at the
end the following new paragraph:
``(4) Amounts paid into the Fund pursuant to
section 1111(c) of this title.''.
(3) Section 1115 of such title is amended--
(A) in subsection (a), by inserting
``participating'' before ``uniformed services'';
(B) in subparagraphs (A)(ii) and (B)(ii) of
subsection (b)(1), by inserting ``under the
jurisdiction of the Secretary of Defense'' after
``uniformed services'';
(C) in subsection (b)(2), by inserting ``(or to the
other executive department having jurisdiction over the
participating uniformed service)'' after ``Department
of Defense''; and
(D) in subparagraphs (A) and (B) of subsection
(c)(1), by inserting ``participating'' before
``uniformed services''.
(4) Section 1116(a) of such title is amended in paragraphs
(1)(B) and (2)(B) by inserting ``under the jurisdiction of the
Secretary of Defense'' after ``uniformed services''.
(c) Clarification of Payments From the Fund.--(1)
Subsection (a) of section 1113 of such title is amended to read
as follows:
``(a) There shall be paid from the Fund amounts payable for
the costs of all uniformed service retiree health care programs
for the benefit of members or former members of a participating
uniformed service who are entitled to retired or retainer pay
and are medicare eligible, and eligible dependents who are
medicare eligible.''.
(2) Such section is further amended by adding at the end
the following new subsections:
``(c)(1) In carrying out subsection (a), the Secretary of
Defense may transfer periodically from the Fund to applicable
appropriations of the Department of Defense, or to applicable
appropriations of other departments or agencies, such amounts
as the Secretary determines necessary to cover the costs
chargeable to those appropriations for uniformed service
retiree health care programs for beneficiaries under those
programs who are medicare-eligible. Such transfers may include
amounts necessary for the administration of such programs.
Amounts so transferred shall be merged with and be available
for the same purposes and for the same time period as the
appropriation to which transferred. Upon a determination that
all or part of the funds transferred from the Fund are not
necessary for the purposes for which transferred, such amounts
may be transferred back to the Fund. This transfer authority is
in addition to any other transfer authority that may be
available to the Secretary.
``(2) A transfer from the Fund under paragraph (1) may not
be made to an appropriation after the end of the second fiscal
year after the fiscal year that the appropriation is available
for obligation. A transfer back to the Fund under paragraph (1)
may not be made after the end of the second fiscal year after
the fiscal year for which the appropriation to which the funds
were originally transferred is available for obligation.
``(d) The Secretary of Defense shall by regulation
establish the method or methods for calculating amounts to be
transferred under subsection (c). Such method or methods may be
based (in whole or in part) on a proportionate share of the
volume (measured as the Secretary determines appropriate) of
health care services provided or paid for under uniformed
service retiree health care programs for beneficiaries under
those programs who are medicare-eligible in relation to the
total volume of health care services provided or paid for under
Department of Defense health care programs.
``(e) The regulations prescribed by the Secretary under
subsection (d) shall be provided to the Comptroller General not
less than 60 days before such regulations become effective. The
Comptroller General shall, not later than 30 days after
receiving such regulations, report to the Secretary of Defense
and Congress on the adequacy and appropriateness of the
regulations.
``(f) If the Secretary of Defense enters into an agreement
with another administering Secretary pursuant to section
1111(c), the Secretary of Defense may take the actions
described in subsections (c), (d), and (e) on behalf of the
beneficiaries and programs of the other participating uniformed
service.''.
(d) Source of Funds for Monthly Accrual Payments Into the
Fund.--Section 1116 of such title is further amended--
(1) in subsection (a)(2)(B) (as amended by
subsection (b)(4)), by striking the sentence beginning
``Amounts paid into''; and
(2) by adding at the end the following new
subsection:
``(c) Amounts paid into the Fund under subsection (a) shall
be paid from funds available for the health care programs of
the participating uniformed services under the jurisdiction of
the respective administering Secretaries.''.
(e) Technical Amendments.--(1) Sections 1111(a),
1115(c)(2), 1116(a)(1)(A), and 1116(a)(2)(A) of such title are
amended by striking ``Department of Defense retiree health care
programs'' and inserting ``uniformed services retiree health
care programs''.
(2) The heading for section 1111 of such title is amended
to read as follows:

``Sec. 1111. Establishment and purpose of Fund; definitions; authority
to enter into agreements''.

(3) The item relating to section 1111 in the table of
sections at the beginning of chapter 56 of such title is
amended to read as follows:

``1111. Establishment and purpose of Fund; definitions; authority to
enter into agreements.''.

(f) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of chapter 56
of title 10, United States Code, by section 713(a)(1) of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat.
1654A-179).
(g) First Year Contributions.--With respect to
contributions under section 1116(a) of title 10, United States
Code, for the first year that the Department of Defense
Medicare-Eligible Retiree Health Care Fund is established under
chapter 56 of such title, if the Board of Actuaries is unable
to execute its responsibilities with respect to such section,
the Secretary of Defense may make contributions under such
section using methods and assumptions developed by the
Secretary.

Subtitle C--Studies and Reports

SEC. 721. COMPTROLLER GENERAL STUDY OF HEALTH CARE COVERAGE OF MEMBERS
OF THE RESERVE COMPONENTS OF THE ARMED FORCES AND
THE NATIONAL GUARD.

(a) Requirement for Study.--The Comptroller General shall
carry out a study of the needs of members of the reserve
components of the Armed Forces and the National Guard and their
families for health care benefits. The study shall include the
following:
(1) An analysis of how members of the reserve
components of the Armed Forces and the National Guard
currently obtain coverage for health care benefits when
not on active duty, together with statistics on
enrollments in health care benefits plans, including--
(A) the percentage of such members who are
not covered by an employer health benefits
plan;
(B) the percentage of such members who are
not covered by an individual health benefits
plan; and
(C) the percentage of such members who are
not covered by any health insurance or other
health benefits plan.
(2) An assessment of the disruptions in health
benefits coverage that a mobilization of members of the
reserve components of the Armed Forces and the National
Guard causes for the members and their families.
(3) An assessment of the cost and effectiveness of
various options for preventing or reducing disruptions
described in paragraph (2), including--
(A) providing health care benefits to all
members of the reserve components of the Armed
Forces and the National Guard and their
families through the TRICARE program, the
Federal Employees Health Benefits Program, or
otherwise;
(B) revising and extending the program of
transitional medical and dental care that is
provided under section 1074b of title 10,
United States Code, for members of the Armed
Forces upon release from active duty served in
support of a contingency operation;
(C) requiring the health benefits plans of
such members, including individual health
benefits plans and group health benefits plans,
to permit such members to elect to resume
coverage under such health benefits plans upon
release from active duty in support of a
contingency operation;
(D) allowing members of the reserve
components of the Armed Forces and the National
Guard to participate in TRICARE Standard using
various cost-sharing arrangements;
(E) providing employers of members of the
reserve components of the Armed Forces and the
National Guard with the option of paying the
costs of participation in the TRICARE program
for such members and their families using
various cost-sharing arrangements;
(F) providing financial assistance for
paying premiums or other subscription charges
for continuation of coverage by private sector
health insurance or other health benefits
plans; and
(G) any other options that the Comptroller
General determines advisable to consider.
(b) Report.--Not later than May 1, 2002, the Comptroller
General shall submit to Congress a report describing the
findings of the study conducted under subsection (a).

SEC. 722. COMPTROLLER GENERAL STUDY OF ADEQUACY AND QUALITY OF HEALTH
CARE PROVIDED TO WOMEN UNDER THE DEFENSE HEALTH
PROGRAM.

(a) Requirement for Study.--The Comptroller General shall
carry out a study of the adequacy and quality of the health
care provided to women under chapter 55 of title 10, United
States Code.
(b) Specific Consideration.--The study shall include an
intensive review of the availability and quality of
reproductive health care services.
(c) Report.--The Comptroller General shall submit a report
on the results of the study to Congress not later than May 1,
2002.

SEC. 723. REPEAL OF OBSOLETE REPORT REQUIREMENT.

Section 701 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. 1074g note) is
amended by striking subsection (d).

SEC. 724. COMPTROLLER GENERAL REPORT ON REQUIREMENT TO PROVIDE
SCREENINGS, PHYSICAL EXAMINATIONS, AND OTHER CARE
FOR CERTAIN MEMBERS.

(a) Report Required.--The Comptroller General shall prepare
a report on the advisability, need, and cost effectiveness of
the requirements under section 1074a(d) of title 10, United
States Code, that the Secretary of the Army provide medical and
dental screenings, physical examinations, and certain dental
care for early deploying members of the Selected Reserve. The
report shall include any recommendations for changes to such
requirements based on the most current information available on
the value of periodic physical examinations and any role such
examinations play in monitoring force and individual member
pre-deployment and post-deployment health status.
(b) Deadline for Submission.--The report required by
subsection (a) shall be provided to the Committees on Armed
Services of the Senate and the House of Representatives not
later than June 1, 2002.

Subtitle D--Other Matters

SEC. 731. PROHIBITION AGAINST REQUIRING MILITARY RETIREES TO RECEIVE
HEALTH CARE SOLELY THROUGH THE DEPARTMENT OF
DEFENSE.

(a) Prohibition.--Chapter 55 of title 10, United States
Code, is amended by inserting after section 1086a the following
new section:

``Sec. 1086b. Prohibition against requiring retired members to receive
health care solely through the Department of
Defense

``The Secretary of Defense may not take any action that
would require, or have the effect of requiring, a member or
former member of the armed forces who is entitled to retired or
retainer pay to enroll to receive health care from the Federal
Government only through the Department of Defense.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1086a the following new item:

``1086b. Prohibition against requiring retired members to receive health
care solely through the Department of Defense.''.

SEC. 732. FEES FOR TRAUMA AND OTHER MEDICAL CARE PROVIDED TO CIVILIANS.

(a) Requirement To Implement Procedures.--(1) Chapter 55 of
title 10, United States Code, is amended by inserting after
section 1079a the following new section:

``Sec. 1079b. Procedures for charging fees for care provided to
civilians; retention and use of fees collected

``(a) Requirement To Implement Procedures.--The Secretary
of Defense shall implement procedures under which a military
medical treatment facility may charge civilians who are not
covered beneficiaries (or their insurers) fees representing the
costs, as determined by the Secretary, of trauma and other
medical care provided to such civilians.
``(b) Use of Fees Collected.--A military medical treatment
facility may retain and use the amounts collected under
subsection (a) for--
``(1) trauma consortium activities;
``(2) administrative, operating, and equipment
costs; and
``(3) readiness training.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
1079a the following new item:

``1079b. Procedures for charging fees for care provided to civilians;
retention and use of fees collected.''.

(b) Deadline for Implementation.--The Secretary of Defense
shall begin to implement the procedures required by section
1079b(a) of title 10, United States Code (as added by
subsection (a)), not later than one year after the date of the
enactment of this Act.

SEC. 733. ENHANCEMENT OF MEDICAL PRODUCT DEVELOPMENT.

Section 980 of title 10, United States Code, is amended--
(1) by inserting ``(a)'' before ``Funds''; and
(2) by adding at the end the following new
subsection:
``(b) The Secretary of Defense may waive the prohibition in
this section with respect to a specific research project to
advance the development of a medical product necessary to the
armed forces if the research project may directly benefit the
subject and is carried out in accordance with all other
applicable laws.''.

SEC. 734. PILOT PROGRAM PROVIDING FOR DEPARTMENT OF VETERANS AFFAIRS
SUPPORT IN THE PERFORMANCE OF SEPARATION PHYSICAL
EXAMINATIONS.

(a) Authority.--The Secretary of Defense and the Secretary
of Veterans Affairs may jointly carry out a pilot program under
which the Secretary of Veterans Affairs may perform the
physical examinations required for members of the uniformed
services separating from the uniformed services who are in one
or more geographic areas designated for the pilot program by
the Secretaries.
(b) Reimbursement.--The Secretary of Defense shall
reimburse the Secretary of Veterans Affairs for the cost
incurred by the Secretary of Veterans Affairs in performing,
under the pilot program, the elements of physical examination
that are required by the Secretary concerned in connection with
the separation of a member of a uniformed service.
Reimbursements shall be paid out of funds available for the
performance of separation physical examinations of members of
that uniformed service in facilities of the uniformed services.
(c) Agreement.--(1) If the Secretary of Defense and the
Secretary of Veterans Affairs carry out the pilot program
authorized by this section, the Secretaries shall enter into an
agreement specifying the geographic areas in which the pilot
program is carried out and the means for making reimbursement
payments under subsection (b).
(2) The other administering Secretaries shall also enter
into the agreement to the extent that the Secretary of Defense
determines necessary to apply the pilot program, including the
requirement for reimbursement, to the uniformed services not
under the jurisdiction of the Secretary of a military
department.
(d) Consultation Requirement.--In developing and carrying
out the pilot program, the Secretary of Defense shall consult
with the other administering Secretaries.
(e) Period of Program.--The Secretary of Defense and the
Secretary of Veterans Affairs may carry out the pilot program
under this section beginning not later than July 1, 2002, and
terminating on December 31, 2005.
(f) Reports.--(1) If the Secretary of Defense and the
Secretary of Veterans Affairs carry out the pilot program
authorized by this section--
(A) not later than January 31, 2004, the
Secretaries shall jointly submit to Congress an interim
report on the conduct of the pilot program; and
(B) not later than March 1, 2005, the Secretaries
shall jointly submit to Congress a final report on the
conduct of the pilot program.
(2) Reports under this subsection shall include the
Secretaries' assessment, as of the date of the report, of the
efficacy of the performance of separation physical examinations
as provided for under the pilot program.
(g) Definitions.--In this section:
(1) The term ``administering Secretaries'' has the
meaning given that term in section 1072(3) of title 10,
United States Code.
(2) The term ``Secretary concerned'' has the
meaning given that term in section 101(5) of title 37,
United States Code.

SEC. 735. MODIFICATION OF PROHIBITION ON REQUIREMENT OF NONAVAILABILITY
STATEMENT OR PREAUTHORIZATION.

(a) Clarification of Covered Beneficiaries.--Subsection (a)
of section 721 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-184) is amended by striking
``covered beneficiary under chapter 55 of title 10, United
States Code, who is enrolled in TRICARE Standard,`` and
inserting ``covered beneficiary under TRICARE Standard pursuant
to chapter 55 of title 10, United States Code,''.
(b) Repeal of Requirement for Notification Regarding Health
Care Received From Another Source.--Subsection (b) of such
section is repealed.
(c) Waiver Authority.--Such section, as so amended, is
further amended by striking subsection (c) and inserting the
following new subsections:
``(b) Waiver Authority.--The Secretary may waive the
prohibition in subsection (a) if--
``(1) the Secretary--
``(A) demonstrates that significant costs
would be avoided by performing specific
procedures at the affected military medical
treatment facility or facilities;
``(B) determines that a specific procedure
must be provided at the affected military
medical treatment facility or facilities to
ensure the proficiency levels of the
practitioners at the facility or facilities; or
``(C) determines that the lack of
nonavailability statement data would
significantly interfere with TRICARE contract
administration;
``(2) the Secretary provides notification of the
Secretary's intent to grant a waiver under this
subsection to covered beneficiaries who receive care at
the military medical treatment facility or facilities
that will be affected by the decision to grant a waiver
under this subsection;
``(3) the Secretary notifies the Committees on
Armed Services of the House of Representatives and the
Senate of the Secretary's intent to grant a waiver
under this subsection, the reason for the waiver, and
the date that a nonavailability statement will be
required; and
``(4) 60 days have elapsed since the date of the
notification described in paragraph (3).
``(c) Waiver Exception For Maternity Care.--Subsection (b)
shall not apply with respect to maternity care.''.
(d) Effective Date.--(1) Subsection (a) of such section is
amended by striking ``under any new contract for the provision
of health care services''.
(2) Subsection (d) of such section is amended by striking
``take effect on October 1, 2001.'' and inserting ``take effect
on the earlier of the following:
``(1) The date that a new contract entered into by
the Secretary to provide health care services under
TRICARE Standard takes effect.
``(2) The date that is two years after the date of
the enactment of the National Defense Authorization Act
for Fiscal Year 2002.''.
(e) Report.--Not later than March 1, 2002, the Secretary of
Defense shall submit to the Committees on Armed Services of the
House of Representatives and the Senate a report on the
Secretary's plans for implementing section 721 of the Floyd D.
Spence National Defense Authorization Act for Fiscal Year 2001,
as amended by this section.

SEC. 736. TRANSITIONAL HEALTH CARE FOR MEMBERS SEPARATED FROM ACTIVE
DUTY.

(a) Permanent Authority for Involuntarily Separated Members
and Mobilized Reserves.--Subsection (a) of section 1145 of
title 10, United States Code, is amended--
(1) in paragraph (1), by striking ``paragraph (2),
a member'' and all that follows through ``of the
member),'' and inserting ``paragraph (3), a member of
the armed forces who is separated from active duty as
described in paragraph (2)'';
(2) by redesignating paragraph (2) as paragraph
(3);
(3) by inserting after paragraph (1) the following
new paragraph (2):
``(2) This subsection applies to the following members of
the armed forces:
``(A) A member who is involuntarily separated from
active duty.
``(B) A member of a reserve component who is
separated from active duty to which called or ordered
in support of a contingency operation if the active
duty is active duty for a period of more than 30 days.
``(C) A member who is separated from active duty
for which the member is involuntarily retained under
section 12305 of this title in support of a contingency
operation.
``(D) A member who is separated from active duty
served pursuant to a voluntary agreement of the member
to remain on active duty for a period of less than one
year in support of a contingency operation.''; and
(4) in paragraph (3), as redesignated by paragraph
(2), by striking ``involuntarily'' each place it
appears.
(b) Conforming Amendments.--Such section 1145 is further
amended--
(1) in subsection (c)(1), by striking ``during the
period beginning on October 1, 1990, and ending on
December 31, 2001''; and
(2) in subsection (e), by striking the first
sentence.
(c) Repeal of Superseded Authority.--(1) Section 1074b of
title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter 55 of
such title is amended by striking the item relating to section
1074b.
(d) Transition Provision.--Notwithstanding the repeal of
section 1074b of title 10, United States Code, by subsection
(c), the provisions of that section, as in effect before the
date of the enactment of this Act, shall continue to apply to a
member of the Armed Forces who is released from active duty in
support of a contingency operation before that date.

SEC. 737. TWO-YEAR EXTENSION OF HEALTH CARE MANAGEMENT DEMONSTRATION
PROGRAM.

(a) Extension.--Subsection (d) of section 733 of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001 (as enacted by Public Law 106-398; 114 Stat. 1654A-191) is
amended by striking ``December 31, 2001'' and inserting
``December 31, 2003''.
(b) Report.--Subsection (e) of that section is amended--
(1) by striking ``Reports.--'' and inserting
``Report.--''; and
(2) by striking ``March 15, 2002'' and inserting
``March 15, 2004''.

SEC. 738. JOINT DOD-VA PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL
EDUCATION AND TRAINING FOR PHYSICIANS.

(a) In General.--The Secretary of Defense and the Secretary
of Veterans Affairs may jointly carry out a pilot program under
which graduate medical education and training is provided to
military physicians and physician employees of the Department
of Defense and the Department of Veterans Affairs through one
or more programs carried out in military medical treatment
facilities of the Department of Defense and medical centers of
the Department of Veterans Affairs.
(b) Cost-Sharing Agreement.--If the Secretary of Defense
and the Secretary of Veterans Affairs carry out a pilot program
under subsection (a), the Secretaries shall enter into an
agreement for carrying out the pilot program under which means
are established for each respective Secretary to assist in
paying the costs, with respect to individuals under the
jurisdiction of such Secretary, incurred by the other Secretary
in providing medical education and training under the pilot
program.
(c) Use of Existing Authorities.--To carry out the pilot
program, the Secretary of Defense and the Secretary of Veterans
Affairs shall exercise authorities provided to the Secretaries,
respectively, under other laws relating to the furnishing or
support of medical education and the cooperative use of
facilities.
(d) Period of Program.--If the Secretary of Defense and the
Secretary of Veterans Affairs carry out a pilot program under
subsection (a), such pilot program shall begin not later than
August 1, 2002, and shall terminate on July 31, 2007.
(e) Reports.--If the Secretary of Defense and the Secretary
of Veterans Affairs carry out a pilot program under subsection
(a), not later than January 31, 2003, and January 31 of each
year thereafter through 2008, the Secretaries shall jointly
submit to Congress a report on the pilot program. The report
shall cover the preceding year and shall include each
Secretary's assessment of the efficacy of providing education
and training under the program.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Procurement Management and Administration

Subtitle B--Use of Preferred Sources

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Related Matters

Subtitle D--Other Matters

Subtitle A--Procurement Management and Administration

SEC. 801. MANAGEMENT OF PROCUREMENT OF SERVICES.

(a) Responsibility of Under Secretary of Defense for
Acquisition, Technology, and Logistics.--Section 133(b)(2) of
title 10, United States Code, is amended by inserting ``of
goods and services'' after ``procurement''.
(b) Requirement for Management Structure.--(1) Chapter 137
of such title is amended by inserting after section 2328 the
following new section:

``Sec. 2330. Procurement of services: management structure

``(a) Requirement for Management Structure.--(1) The
Secretary of Defense shall establish and implement a management
structure for the procurement of services for the Department of
Defense. The management structure shall be comparable to the
management structure that applies to the procurement of
products by the Department.
``(2) The management structure required by paragraph (1)
shall--
``(A) provide for a designated official in each
military department to exercise responsibility for the
management of the procurement of services for such
department;
``(B) provide for a designated official for Defense
Agencies and other defense components outside the
military departments to exercise responsibility for the
management of the procurement of services for such
Defense Agencies and components;
``(C) include a means by which employees of the
departments, Defense Agencies, and components are
accountable to such designated officials for carrying
out the requirements of subsection (b); and
``(D) establish specific dollar thresholds and
other criteria for advance approvals of purchases under
subsection (b)(1)(C) and delegations of activity under
subsection (b)(2).
``(b) Contracting Responsibilities of Designated
Officials.--(1) The responsibilities of an official designated
under subsection (a) shall include, with respect to the
procurement of services for the military department or Defense
Agencies and components by that official, the following:
``(A) Ensuring that the services are procured by
means of contracts or task orders that are in the best
interests of the Department of Defense and are entered
into or issued and managed in compliance with
applicable statutes, regulations, directives, and other
requirements, regardless of whether the services are
procured through a contract or task order of the
Department of Defense or through a contract entered
into or task order issued by an official of the United
States outside the Department of Defense.
``(B) Analyzing data collected under section 2330a
of this title on contracts that are entered into for
the procurement of services.
``(C) Approving, in advance, any procurement of
services above the thresholds established pursuant to
subsection (a)(2)(D) that is to be made through the use
of--
``(i) a contract or task order that is not
a performance-based contract or task order; or
``(ii) a contract entered into, or a task
order issued, by an official of the United
States outside the Department of Defense.
``(2) The responsibilities of a designated official may be
delegated to other employees of the Department of Defense in
accordance with the criteria established by the Secretary of
Defense.
``(c) Definition.--In this section, the term `performance-
based', with respect to a contract or a task order means that
the contract or task order, respectively, includes the use of
performance work statements that set forth requirements in
clear, specific, and objective terms with measurable
outcomes.''.
(2) Not later than 180 days after the date of the enactment
of this Act--
(A) the Secretary of Defense shall establish and
implement the management structure required under
section 2330 of title 10, United States Code (as added
by paragraph (1)); and
(B) the Under Secretary of Defense for Acquisition,
Technology, and Logistics shall issue guidance for
officials in the management structure established under
such section 2330 regarding how to carry out their
responsibilities under that section.
(c) Tracking of Procurement of Services.--Chapter 137 of
title 10, United States Code, as amended by subsection (b), is
further amended by inserting after section 2330 the following
new section:

``Sec. 2330a. Procurement of services: tracking of purchases

``(a) Data Collection Required.--The Secretary of Defense
shall establish a data collection system to provide management
information with regard to each purchase of services by a
military department or Defense Agency in excess of the
simplified acquisition threshold, regardless of whether such a
purchase is made in the form of a contract, task order,
delivery order, military interdepartmental purchase request, or
any other form of interagency agreement.
``(b) Data To Be Collected.--The data required to be
collected under subsection (a) includes the following:
``(1) The services purchased.
``(2) The total dollar amount of the purchase.
``(3) The form of contracting action used to make
the purchase.
``(4) Whether the purchase was made through--
``(A) a performance-based contract,
performance-based task order, or other
performance-based arrangement that contains
firm fixed prices for the specific tasks to be
performed;
``(B) any other performance-based contract,
performance-based task order, or performance-
based arrangement; or
``(C) any contract, task order, or other
arrangement that is not performance based.
``(5) In the case of a purchase made through an
agency other than the Department of Defense, the agency
through which the purchase is made.
``(6) The extent of competition provided in making
the purchase and whether there was more than one offer.
``(7) Whether the purchase was made from--
``(A) a small business concern;
``(B) a small business concern owned and
controlled by socially and economically
disadvantaged individuals; or
``(C) a small business concern owned and
controlled by women.
``(c) Compatibility With Data Collection System for
Information Technology Purchases.--To the maximum extent
practicable, a single data collection system shall be used to
collect data under this section and information under section
2225 of this title.
``(d) Definitions.--In this section:
``(1) The term `performance-based', with respect to
a contract, task order, or arrangement, means that the
contract, task order, or arrangement, respectively,
includes the use of performance work statements that
set forth contract requirements in clear, specific, and
objective terms with measurable outcomes.
``(2) The definitions set forth in section 2225(f)
of this title for the terms `simplified acquisition
threshold', `small business concern', `small business
concern owned and controlled by socially and
economically disadvantaged individuals', and `small
business concern owned and controlled by women' shall
apply.''.
(d) Requirement for Program Review Structure.--(1) Not
later than 180 days after the date of the enactment of this
Act, the Secretary of Defense shall issue and implement a
policy that applies to the procurement of services by the
Department of Defense a program review structure that is
similar to the one developed for and applied to the procurement
of weapon systems by the Department of Defense.
(2) The program review structure for the procurement of
services shall, at a minimum, include the following:
(A) Standards for determining which procurements
should be subject to review by either the senior
procurement executive of a military department or the
senior procurement executive of the Department of
Defense under such section, including criteria based on
dollar thresholds, program criticality, or other
appropriate measures.
(B) Appropriate key decision points at which those
reviews should take place.
(C) A description of the specific matters that
should be reviewed.
(e) Comptroller General Review.--Not later than 90 days
after the date on which the Secretary issues the policy
required by subsection (d) and the Under Secretary of Defense
for Acquisition, Technology, and Logistics issues the guidance
required by subsection (b)(2), the Comptroller General shall
submit to the Committees on Armed Services of the Senate and
the House of Representatives an assessment of the compliance
with the requirements of this section and the amendments made
by this section.
(f) Definitions.--In this section:
(1) The term ``senior procurement executive'' means
the official designated as the senior procurement
executive under section 16(3) of the Office of Federal
Procurement Policy Act (41 U.S.C. 414(3)).
(2) The term ``performance-based'', with respect to
a contract or a task order means that the contract or
task order, respectively, includes the use of
performance work statements that set forth contract
requirements in clear, specific, and objective terms
with measurable outcomes.
(g) Clerical Amendments.--(1) The heading for section 2331
of title 10, United States Code, is amended to read as follows:

``Sec. 2331. Procurement of services: contracts for professional and
technical services''.

(2) The table of sections at the beginning of chapter 137
of such title is amended by striking the item relating to
section 2331 and inserting the following new items:

``2330. Procurement of services: management structure.
``2330a. Procurement of services: tracking of purchases.
``2331. Procurement of services: contracts for professional and
technical services.''.

SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.

(a) Goals.--(1) It shall be an objective of the Department
of Defense to achieve savings in expenditures for procurements
of services through the use of--
(A) performance-based services contracting;
(B) appropriate competition for task orders under
services contracts; and
(C) program review, spending analyses, and improved
management of services contracts.
(2) In furtherance of such objective, the Department of
Defense shall have goals to use improved management practices
to achieve, over 10 fiscal years, reductions in the total
amount that would otherwise be expended by the Department for
the procurement of services (other than military construction)
in a fiscal year by the amount equal to 10 percent of the total
amount of the expenditures of the Department for fiscal year
2000 for procurement of services (other than military
construction), as follows:
(A) By fiscal year 2002, a three percent reduction.
(B) By fiscal year 2003, a four percent reduction.
(C) By fiscal year 2004, a five percent reduction.
(D) By fiscal year 2011, a ten percent reduction.
(b) Annual Report.--Not later than March 1, 2002, and
annually thereafter through March 1, 2006, the Secretary of
Defense shall submit to the congressional defense committees a
report on the progress made toward meeting the objective and
goals established in subsection (a). Each report shall include,
at a minimum, the following information:
(1) A summary of the steps taken or planned to be
taken in the fiscal year of the report to improve the
management of procurements of services.
(2) A summary of the steps planned to be taken in
the following fiscal year to improve the management of
procurements of services.
(3) An estimate of the amount that will be expended
by the Department of Defense for procurements of
services in the fiscal year of the report.
(4) An estimate of the amount that will be expended
by the Department of Defense for procurements of
services in the following fiscal year.
(5) An estimate of the amount of savings that, as a
result of improvement of the management practices used
by the Department of Defense, will be achieved for the
procurement of services by the Department in the fiscal
year of the report and in the following fiscal year.

SEC. 803. COMPETITION REQUIREMENT FOR PURCHASE OF SERVICES PURSUANT TO
MULTIPLE AWARD CONTRACTS.

(a) Regulations Required.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of Defense
shall promulgate in the Department of Defense Supplement to the
Federal Acquisition Regulation regulations requiring
competition in the purchase of services by the Department of
Defense pursuant to multiple award contracts.
(b) Content of Regulations.--(1) The regulations required
by subsection (a) shall provide, at a minimum, that each
individual purchase of services in excess of $100,000 that is
made under a multiple award contract shall be made on a
competitive basis unless a contracting officer of the
Department of Defense--
(A) waives the requirement on the basis of a
determination that--
(i) one of the circumstances described in
paragraphs (1) through (4) of section 2304c(b)
of title 10, United States Code, applies to
such individual purchase; or
(ii) a statute expressly authorizes or
requires that the purchase be made from a
specified source; and
(B) justifies the determination in writing.
(2) For purposes of this subsection, an individual purchase
of services is made on a competitive basis only if it is made
pursuant to procedures that--
(A) require fair notice of the intent to make that
purchase (including a description of the work to be
performed and the basis on which the selection will be
made) to be provided to all contractors offering such
services under the multiple award contract; and
(B) afford all contractors responding to the notice
a fair opportunity to make an offer and have that offer
fairly considered by the official making the purchase.
(3) Notwithstanding paragraph (2), notice may be provided
to fewer than all contractors offering such services under a
multiple award contract described in subsection (c)(2)(A) if
notice is provided to as many contractors as practicable.
(4) A purchase may not be made pursuant to a notice that is
provided to fewer than all contractors under paragraph (3)
unless--
(A) offers were received from at least three
qualified contractors; or
(B) a contracting officer of the Department of
Defense determines in writing that no additional
qualified contractors were able to be identified
despite reasonable efforts to do so.
(c) Definitions.--In this section:
(1) The term ``individual purchase'' means a task
order, delivery order, or other purchase.
(2) The term ``multiple award contract'' means--
(A) a contract that is entered into by the
Administrator of General Services under the
multiple award schedule program referred to in
section 2302(2)(C) of title 10, United States
Code;
(B) a multiple award task order contract
that is entered into under the authority of
sections 2304a through 2304d of title 10,
United States Code, or sections 303H through
303K of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253h through
253k); and
(C) any other indefinite delivery,
indefinite quantity contract that is entered
into by the head of a Federal agency with two
or more sources pursuant to the same
solicitation.
(3) The term ``Defense Agency'' has the meaning
given that term in section 101(a)(11) of title 10,
United States Code.
(d) Applicability.--The regulations promulgated by the
Secretary pursuant to subsection (a) shall take effect not
later than 180 days after the date of the enactment of this Act
and shall apply to all individual purchases of services that
are made under multiple award contracts on or after the
effective date, without regard to whether the multiple award
contracts were entered into before, on, or after such effective
date.

SEC. 804. REPORTS ON MATURITY OF TECHNOLOGY AT INITIATION OF MAJOR
DEFENSE ACQUISITION PROGRAMS.

(a) Reports Required.--Not later than March 1 of each of
years 2003 through 2006, the Secretary of Defense shall submit
to the Committees on Armed Services of the Senate and the House
of Representatives a report on the implementation of the
requirement in paragraph 4.7.3.2.2.2 of Department of Defense
Instruction 5000.2, as in effect on the date of enactment of
this Act, that technology must have been demonstrated in a
relevant environment (or, preferably, in an operational
environment) to be considered mature enough to use for product
development in systems integration.
(b) Contents of Reports.--Each report required by
subsection (a) shall--
(1) identify each case in which a major defense
acquisition program entered system development and
demonstration during the preceding calendar year and
into which key technology has been incorporated that
does not meet the technological maturity requirement
described in subsection (a), and provide a
justification for why such key technology was
incorporated; and
(2) identify any determination of technological
maturity with which the Deputy Under Secretary of
Defense for Science and Technology did not concur and
explain how the issue has been or will be resolved.
(c) Major Defense Acquisition Program Defined.--In this
section, the term ``major defense acquisition program'' has the
meaning given that term in section 139(a)(2) of title 10,
United States Code.

Subtitle B--Use of Preferred Sources

SEC. 811. APPLICABILITY OF COMPETITION REQUIREMENTS TO PURCHASES FROM A
REQUIRED SOURCE.

(a) Conditions for Competition.--(1) Chapter 141 of title
10, United States Code, is amended by adding at the end the
following:

``Sec. 2410n. Products of Federal Prison Industries: procedural
requirements

``(a) Market Research Before Purchase.--Before purchasing a
product listed in the latest edition of the Federal Prison
Industries catalog under section 4124(d) of title 18, the
Secretary of Defense shall conduct market research to determine
whether the Federal Prison Industries product is comparable in
price, quality, and time of delivery to products available from
the private sector.
``(b) Limited Competition Requirement.--If the Secretary
determines that a Federal Prison Industries product is not
comparable in price, quality, and time of delivery to products
available from the private sector, the Secretary shall use
competitive procedures for the procurement of the product. In
conducting such a competition, the Secretary shall consider a
timely offer from Federal Prison Industries for award in
accordance with the specifications and evaluation factors
specified in the solicitation.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following:

``2410n. Products of Federal Prison Industries: procedural
requirements.''.

(b) Applicability.--Section 2410n of title 10, United
States Code (as added by subsection (a)), shall apply to
purchases initiated on or after October 1, 2001.

SEC. 812. EXTENSION OF MENTOR-PROTEGE PROGRAM.

Section 831 of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is
amended--
(1) in subsection (j)--
(A) in paragraph (1), by striking
``September 30, 2002'' and inserting
``September 30, 2005''; and
(B) in paragraph (2), by striking
``September 30, 2005'' and inserting
``September 30, 2008''; and
(2) in subsection (l)(3), by striking ``2004'' and
inserting ``2007''.

SEC. 813. INCREASE OF ASSISTANCE LIMITATION REGARDING PROCUREMENT
TECHNICAL ASSISTANCE PROGRAM.

Section 2414(a)(1) of title 10, United States Code, is
amended by striking ``$300,000'' and inserting ``$600,000''.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Related Matters

SEC. 821. AMENDMENTS TO CONFORM WITH ADMINISTRATIVE CHANGES IN
ACQUISITION PHASE AND MILESTONE TERMINOLOGY AND TO
MAKE RELATED ADJUSTMENTS IN CERTAIN REQUIREMENTS
APPLICABLE AT MILESTONE TRANSITION POINTS.

(a) Acquisition Phase Terminology.--The following
provisions of title 10, United States Code, are amended by
striking ``engineering and manufacturing development'' each
place it appears and inserting ``system development and
demonstration'': sections 2366(c) and 2434(a), and subsections
(b)(3)(A)(i), (c)(3)(A), and (h)(1) of section 2432.
(b) Milestone Transition Points.--(1) Section 811(c) of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat.
1654A-211), is amended by striking ``Milestone I approval,
Milestone II approval, or Milestone III approval (or the
equivalent) of a major automated information system'' and
inserting ``approval of a major automated information system at
Milestone B or C or for full rate production, or an equivalent
approval,''.
(2) Department of Defense Directive 5000.1, as revised in
accordance with subsection (b) of section 811 of such Act,
shall be further revised as necessary to comply with subsection
(c) of such section, as amended by paragraph (1), within 60
days after the date of the enactment of this Act.
(c) Adjustments to Requirement for Determination of
Quantity for Low-Rate Initial Production.--Section 2400(a) of
title 10, United States Code, is amended--
(1) by striking ``milestone II'' each place it
appears in paragraphs (1)(A), (2), (4) and (5) and
inserting ``milestone B''; and
(2) in paragraph (2), by striking ``engineering and
manufacturing development'' and inserting ``system
development and demonstration''.
(d) Adjustments to Requirements for Baseline Description
and the Related Limitation.--Section 2435 of title 10, United
States Code, is amended--
(1) in subsection (b), by striking ``engineering
and manufacturing development'' and inserting ``system
development and demonstration''; and
(2) in subsection (c)--
(A) in paragraph (1), by striking
``demonstration and validation'' and inserting
``system development and demonstration'';
(B) in paragraph (2), by striking
``engineering and manufacturing development''
and inserting ``production and deployment'';
and
(C) in paragraph (3), by striking
``production and deployment'' and inserting
``full rate production''.

SEC. 822. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS DEVELOPED
PURSUANT TO PROTOTYPE PROJECTS.

Section 845 of the National Defense Authorization Act for
Fiscal Year 1994 (10 U.S.C. 2371 note) is amended--
(1) by redesignating subsection (f) as subsection
(g); and
(2) by inserting after subsection (e) the following
new subsection (f):
``(f) Follow-On Production Contracts.--(1) A transaction
entered into under this section for a prototype project that
satisfies the conditions set forth in subsection (d)(1)(B)(i)
may provide for the award of a follow-on production contract to
the participants in the transaction for a specific number of
units at specific target prices. The number of units specified
in the transaction shall be determined on the basis of a
balancing of the level of the investment made in the project by
the participants other than the Federal Government with the
interest of the Federal Government in having competition among
sources in the acquisition of the product or products
prototyped under the project.
``(2) A follow-on production contract provided for in a
transaction under paragraph (1) may be awarded to the
participants in the transaction without the use of competitive
procedures, notwithstanding the requirements of section 2304 of
title 10, United States Code, if--
``(A) competitive procedures were used for the
selection of parties for participation in the
transaction;
``(B) the participants in the transaction
successfully completed the prototype project provided
for in the transaction;
``(C) the number of units provided for in the
follow-on production contract does not exceed the
number of units specified in the transaction for such a
follow-on production contract; and
``(D) the prices established in the follow-on
production contract do not exceed the target prices
specified in the transaction for such a follow-on
production contract.''.

SEC. 823. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED PROCEDURES
TO CERTAIN COMMERCIAL ITEMS.

Section 4202 of the Clinger-Cohen Act of 1996 (divisions D
and E of Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304
note) is amended in subsection (e) by striking ``January 1,
2002'' and inserting ``January 1, 2003''.

SEC. 824. ACQUISITION WORKFORCE QUALIFICATIONS.

(a) Qualifications.--Section 1724 of title 10, United
States Code, is amended--
(1) in subsection (a)--
(A) by striking the matter preceding
paragraph (1) and inserting the following:
``(a) Contracting Officers.--The Secretary of Defense shall
require that, in order to qualify to serve in an acquisition
position as a contracting officer with authority to award or
administer contracts for amounts above the simplified
acquisition threshold
referred to in section 2304(g) of this title, an employee of
the De-
partment of Defense or member of the armed forces (other than
the Coast Guard) must, except as provided in subsections (c)
and
(d)--'';
(B) in paragraph (1)--
(i) by striking ``mandatory''; and
(ii) by striking ``at the grade
level'' and all that follows and
inserting ``(A) in the case of an
employee, serving in the position
within the grade of the General
Schedule in which the employee is
serving, and (B) in the case of a
member of the armed forces, in the
member's grade;''; and
(C) in paragraph (3)(A), by inserting a
comma after ``business'';
(2) by striking subsection (b) and inserting the
following new subsection:
``(b) GS-1102 Series Positions and Similar Military
Positions.--(1) The Secretary of Defense shall require that in
order to qualify to serve in a position in the Department of
Defense that is in the GS-1102 occupational series an employee
or potential employee of the Department of Defense meet the
requirements set forth in paragraph (3) of subsection (a). The
Secretary may not require that in order to serve in such a
position an employee or potential employee meet any of the
requirements of paragraphs (1) and (2) of that subsection.
``(2) The Secretary of Defense shall require that in order
for a member of the armed forces to be selected for an
occupational specialty within the armed forces that (as
determined by the Secretary) is similar to the GS-1102
occupational series a member of the armed forces meet the
requirements set forth in paragraph (3) of subsection (a). The
Secretary may not require that in order to be selected for such
an occupational specialty a member meet any of the requirements
of paragraphs (1) and (2) of that subsection.''; and
(3) by striking subsections (c) and (d) inserting
the following new subsections:
``(c) Exceptions.--The qualification requirements imposed
by the Secretary of Defense pursuant to subsections (a) and (b)
shall not apply to an employee of the Department of Defense or
member of the armed forces who--
``(1) served as a contracting officer with
authority to award or administer contracts in excess of
the simplified acquisition threshold on or before
September 30, 2000;
``(2) served, on or before September 30, 2000, in a
position either as an employee in the GS-1102 series or
as a member of the armed forces in a similar
occupational specialty;
``(3) is in the contingency contracting force; or
``(4) is described in subsection (e)(1)(B).
``(d) Waiver.--The acquisition career program board
concerned may waive any or all of the requirements of
subsections (a) and (b) with respect to an employee of the
Department of Defense or member of the armed forces if the
board certifies that the individual possesses significant
potential for advancement to levels of greater responsibility
and authority, based on demonstrated job performance and
qualifying experience. With respect to each waiver granted
under this subsection, the board shall set forth in a written
document the rationale for its decision to waive such
requirements. Such document shall be submitted to and retained
by the Director of Acquisition Education, Training, and Career
Development.
``(e) Developmental Opportunities.--(1) The Secretary of
Defense may--
``(A) establish or continue one or more programs
for the purpose of recruiting, selecting, appointing,
educating, qualifying, and developing the careers of
individuals to meet the requirements in subparagraphs
(A) and (B) of subsection (a)(3);
``(B) appoint individuals to developmental
positions in those programs; and
``(C) separate from the civil service after a
three-year probationary period any individual appointed
under this subsection who fails to meet the
requirements described in subsection (a)(3).
``(2) To qualify for any developmental program described in
paragraph (1)(B), an individual shall have--
``(A) been awarded a baccalaureate degree, with a
grade point average of at least 3.0 (or the
equivalent), from an accredited institution of higher
education authorized to grant baccalaureate degrees; or
``(B) completed at least 24 semester credit hours
or the equivalent of study from an accredited
institution of higher education in any of the
disciplines of accounting, business, finance, law,
contracts, purchasing, economics, industrial
management, marketing, quantitative methods, or
organization and management.
``(f) Contingency Contracting Force.--The Secretary shall
establish qualification requirements for the contingency
contracting force consisting of members of the armed forces
whose mission is to deploy in support of contingency operations
and other operations of the Department of Defense, including--
``(1) completion of at least 24 semester credit
hours or the equivalent of study from an accredited
institution of higher education or similar educational
institution in any of the disciplines of accounting,
business, finance, law, contracts, purchasing,
economics, industrial management, marketing,
quantitative methods, or organization and management;
or
``(2) passing an examination that demonstrates
skills, knowledge, or abilities comparable to that of
an individual who has completed at least 24 semester
credit hours or the equivalent of study in any of the
disciplines described in paragraph (1).''.
(b) Clerical Amendment.--Section 1732(c)(2) of such title
is amended by inserting a comma after ``business''.

SEC. 825. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE
ACQUISITION 2005 TASK FORCE.

(a) Requirement for Report.--Not later than March 1, 2002,
the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a
report on the extent of the implementation of the
recommendations set forth in the final report of the Department
of Defense Acquisition 2005 Task Force, entitled ``Shaping the
Civilian Acquisition Workforce of the Future''.
(b) Content of Report.--The report shall include the
following:
(1) For each recommendation in the final report
that is being implemented or that the Secretary plans
to implement--
(A) a summary of all actions that have been
taken to implement the recommendation; and
(B) a schedule, with specific milestones,
for completing the implementation of the
recommendation.
(2) For each recommendation in the final report
that the Secretary does not plan to implement--
(A) the reasons for the decision not to
implement the recommendation; and
(B) a summary of any alternative actions
the Secretary plans to take to address the
purposes underlying the recommendation.
(3) A summary of any additional actions the
Secretary plans to take to address concerns raised in
the final report about the size and structure of the
acquisition workforce of the Department of Defense.
(c) Comptroller General Review.--Not later than 60 days
after the date on which the Secretary submits the report
required by subsection (a), the Comptroller General shall--
(1) review the report; and
(2) submit to the committees referred to in
subsection (a) the Comptroller General's assessment of
the extent to which the report--
(A) complies with the requirements of this
section; and
(B) addresses the concerns raised in the
final report about the size and structure of
the acquisition workforce of the Department of
Defense.

Subtitle D--Other Matters

SEC. 831. IDENTIFICATION OF ERRORS MADE BY EXECUTIVE AGENCIES IN
PAYMENTS TO CONTRACTORS AND RECOVERY OF AMOUNTS
ERRONEOUSLY PAID.

(a) Program Required.--(1) Chapter 35 of title 31, United
States Code, is amended by adding at the end the following new
subchapter:

``SUBCHAPTER VI--RECOVERY AUDITS

``Sec. 3561. Identification of errors made by executive agencies in
payments to contractors and recovery of amounts
erroneously paid

``(a) Program Required.--The head of each executive agency
that enters into contracts with a total value in excess of
$500,000,000 in a fiscal year shall carry out a cost-effective
program for identifying any errors made in paying the
contractors and for recovering any amounts erroneously paid to
the contractors.
``(b) Recovery Audits and Activities.--A program of an
executive agency under subsection (a) shall include recovery
audits and recovery activities. The head of the executive
agency shall determine, in accordance with guidance provided
under subsection (c), the classes of contracts to which
recovery audits and recovery activities are appropriately
applied.
``(c) OMB Guidance.--The Director of the Office of
Management and Budget shall issue guidance for the conduct of
programs under subsection (a). The guidance shall include the
following:
``(1) Definitions of the terms `recovery audit' and
`recovery activity' for the purposes of the programs.
``(2) The classes of contracts to which recovery
audits and recovery activities are appropriately
applied under the programs.
``(3) Protections for the confidentiality of--
``(A) sensitive financial information that
has not been released for use by the general
public; and
``(B) information that could be used to
identify a person.
``(4) Policies and procedures for ensuring that the
implementation of the programs does not result in
duplicative audits of contractor records.
``(5) Policies regarding the types of contracts
executive agencies may use for the procurement of
recovery services, including guidance for use, in
appropriate circumstances, of a contingency contract
pursuant to which the head of an executive agency may
pay a contractor an amount equal to a percentage of the
total amount collected for the United States pursuant
to that contract.
``(6) Protections for a contractor's records and
facilities through restrictions on the authority of a
contractor under a contract for the procurement of
recovery services for an executive agency--
``(A) to require the production of any
record or information by any person other than
an officer, employee, or agent of the executive
agency;
``(B) to establish, or otherwise have, a
physical presence on the property or premises
of any private sector entity for the purposes
of performing the contract; or
``(C) to act as agents for the Government
in the recovery of funds erroneously paid to
contractors.
``(7) Policies for the appropriate types of
management improvement programs authorized by section
3564 of this title that executive agencies may carry
out to address overpayment problems and the recovery of
overpayments.

``Sec. 3562. Disposition of recovered funds

``(a) Availability of Funds for Recovery Audits and
Activities Program.--Funds collected under a program carried
out by an executive agency under section 3561 of this title
shall be available to the executive agency for the following
purposes:
``(1) To reimburse the actual expenses incurred by
the executive agency in the administration of the
program.
``(2) To pay contractors for services under the
program in accordance with the guidance issued under
section 3561(c)(5) of this title.
``(b) Funds Not Used for Program.--Any amounts erroneously
paid by an executive agency that are recovered under such a
program of an executive agency and are not used to reimburse
expenses or pay contractors under subsection (a)--
``(1) shall be credited to the appropriations from
which the erroneous payments were made, shall be merged
with other amounts in those appropriations, and shall
be available for the purposes and period for which such
appropriations are available; or
``(2) if no such appropriation remains available,
shall be deposited in the Treasury as miscellaneous
receipts.
``(c) Priority of Other Authorized Dispositions.--
Notwithstanding subsection (b), the authority under such
subsection may not be exercised to use, credit, or deposit
funds collected under such a program as provided in that
subsection to the extent that any other provision of law
requires or authorizes the crediting of such funds to a
nonappropriated fund instrumentality, revolving fund, working-
capital fund, trust fund, or other fund or account.

``Sec. 3563. Sources of recovery services

``(a) Consideration of Available Recovery Resources.--(1)
In carrying out a program under section 3561 of this title, the
head of an executive agency shall consider all resources
available to that official to carry out the program.
``(2) The resources considered by the head of an executive
agency for carrying out the program shall include the resources
available to the executive agency for such purpose from the
following sources:
``(A) The executive agency.
``(B) Other departments and agencies of the United
States.
``(C) Private sector sources.
``(b) Compliance With Applicable Law and Regulations.--
Before entering into a contract with a private sector source
for the performance of services under a program of the
executive agency carried out under section 3561 of this title,
the head of an executive agency shall comply with--
``(1) any otherwise applicable provisions of Office
of Management and Budget Circular A-76; and
``(2) any other applicable provision of law or
regulation with respect to the selection between
employees of the United States and private sector
sources for the performance of services.

``Sec. 3564. Management improvement programs

``In accordance with guidance provided by the Director of
the Office of Management and Budget under section 3561 of this
title, the head of an executive agency required to carry out a
program under such section 3561 may carry out a program for
improving management processes within the executive agency--
``(1) to address problems that contribute directly
to the occurrence of errors in the paying of
contractors of the executive agency; or
``(2) to improve the recovery of overpayments due
to the agency.

``Sec. 3565. Relationship to authority of inspectors general

``Nothing in this subchapter shall be construed as
impairing the authority of an Inspector General under the
Inspector General Act of 1978 or any other provision of law.

``Sec. 3566. Privacy protections

``Any nongovernmental entity that, in the course of
recovery auditing or recovery activity under this subchapter,
obtains information that identifies an individual or with
respect to which there is a reasonable basis to believe that
the information can be used to identify an individual, may not
disclose the information for any purpose other than such
recovery auditing or recovery activity and governmental
oversight of such activity, unless disclosure for that other
purpose is authorized by the individual to the executive agency
that contracted for the performance of the recovery auditing or
recovery activity.

``Sec. 3567. Definition of executive agency

``Notwithstanding section 102 of this title, in this
subchapter, the term `executive agency' has the meaning given
that term in section 4(1) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(1)).''.
(2) The table of sections at the beginning of chapter 35 of
such title is amended by adding at the end the following:

``SUBCHAPTER VI--RECOVERY AUDITS

``3561. Identification of errors made by executive agencies in payments
to contractors and recovery of amounts erroneously paid.
``3562. Disposition of recovered funds.
``3563. Sources of recovery services.
``3564. Management improvement programs.
``3565. Relationship to authority of inspectors general.
``3566. Privacy protections.
``3567. Definition of executive agency.''.

(b) Reports.--(1) Not later than 30 months after the date
of the enactment of this Act, and annually for each of the
first two years following the year of the first report, the
Director of the Office of Management and Budget shall submit to
the Committee on Government Reform of the House of
Representatives and the Committee on Governmental Affairs of
the Senate, a report on the implementation of subchapter VI of
chapter 35 of title 31, United States Code (as added by
subsection (a)).
(2) Each report shall include--
(A) a general description and evaluation of the
steps taken by the heads of executive agencies to carry
out the programs under such subchapter, including any
management improvement programs carried out under
section 3564 of such title 31;
(B) the costs incurred by executive agencies to
carry out the programs under such subchapter; and
(C) the amounts recovered under the programs under
such subchapter.
(c) Conforming Amendment.--Section 3501 of such title is
amended by inserting ``and subchapter VI'' after ``section
3513''.

SEC. 832. CODIFICATION AND MODIFICATION OF PROVISION OF LAW KNOWN AS
THE ``BERRY AMENDMENT''.

(a) Buy American Requirements.--(1) Chapter 148 of title
10, United States Code, is amended by inserting after section
2533 the following new section:

``Sec. 2533a. Requirement to buy certain articles from American
sources; exceptions

``(a) Requirement.--Except as provided in subsections (c)
through (h), funds appropriated or otherwise available to the
Department of Defense may not be used for the procurement of an
item described in subsection (b) if the item is not grown,
reprocessed, reused, or produced in the United States.
``(b) Covered Items.--An item referred to in subsection (a)
is any of the following:
``(1) An article or item of--
``(A) food;
``(B) clothing;
``(C) tents, tarpaulins, or covers;
``(D) cotton and other natural fiber
products, woven silk or woven silk blends, spun
silk yarn for cartridge cloth, synthetic fabric
or coated synthetic fabric (including all
textile fibers and yarns that are for use in
such fabrics), canvas products, or wool
(whether in the form of fiber or yarn or
contained in fabrics, materials, or
manufactured articles); or
``(E) any item of individual equipment
manufactured from or containing such fibers,
yarns, fabrics, or materials.
``(2) Specialty metals, including stainless steel
flatware.
``(3) Hand or measuring tools.
``(c) Availability Exception.--Subsection (a) does not
apply to the extent that the Secretary of Defense or the
Secretary of the military department concerned determines that
satisfactory quality and sufficient quantity of any such
article or item described in subsection (b)(1) or specialty
metals (including stainless steel flatware) grown, reprocessed,
reused, or produced in the United States cannot be procured as
and when needed at United States market prices.
``(d) Exception for Certain Procurements Outside the United
States.--Subsection (a) does not apply to the following:
``(1) Procurements outside the United States in
support of combat operations.
``(2) Procurements by vessels in foreign waters.
``(3) Emergency procurements or procurements of
perishable foods by an establishment located outside
the United States for the personnel attached to such
establishment.
``(e) Exception for Specialty Metals and Chemical Warfare
Protective Clothing.--Subsection (a) does not preclude the
procurement of specialty metals or chemical warfare protective
clothing produced outside the United States if--
``(1) such procurement is necessary--
``(A) to comply with agreements with
foreign governments requiring the United States
to purchase supplies from foreign sources for
the purposes of offsetting sales made by the
United States Government or United States firms
under approved programs serving defense
requirements; or
``(B) in furtherance of agreements with
foreign governments in which both such
governments agree to remove barriers to
purchases of supplies produced in the other
country or services performed by sources of the
other country; and
``(2) any such agreement with a foreign government
complies, where applicable, with the requirements of
section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with section 2457 of this title.
``(f) Exception for Certain Foods.--Subsection (a) does not
preclude the procurement of foods manufactured or processed in
the United States.
``(g) Exception for Commissaries, Exchanges, and Other
Nonappropriated Fund Instrumentalities.--Subsection (a) does
not apply to items purchased for resale purposes in
commissaries, exchanges, or nonappropriated fund
instrumentalities operated by the Department of Defense.
``(h) Exception for Small Purchases.--Subsection (a) does
not apply to purchases for amounts not greater than the
simplified acquisition threshold referred to in section 2304(g)
of this title.
``(i) Applicability to Contracts and Subcontracts for
Procurement of Commercial Items.--This section is applicable to
contracts and subcontracts for the procurement of commercial
items notwithstanding section 34 of the Office of Federal
Procurement Policy Act (41 U.S.C. 430).
``(j) Geographic Coverage.--In this section, the term
`United States' includes the possessions of the United
States.''.
(2) The table of sections at the beginning of subchapter V
of such chapter is amended by inserting after the item relating
to section 2533 the following new item:

``2533a. Requirement to buy certain articles from American sources;
exceptions.''.

(b) Repeal of Source Provisions.--The following provisions
of law are repealed:
(1) Section 9005 of the Department of Defense
Appropriations Act, 1993 (Public Law 102-396; 10 U.S.C.
2241 note).
(2) Section 8109 of the Department of Defense
Appropriations Act, 1997 (as contained in section
101(b) of Public Law 104-208; 110 Stat. 3009-111; 10
U.S.C. 2241 note).

SEC. 833. PERSONAL SERVICES CONTRACTS TO BE PERFORMED BY INDIVIDUALS OR
ORGANIZATIONS ABROAD.

Section 2 of the State Department Basic Authorities Act of
1956 (22 U.S.C. 2669) is amended by adding at the end the
following:
``(n) exercise the authority provided in subsection
(c), upon the request of the Secretary of Defense or
the head of any other department or agency of the
United States, to enter into personal service contracts
with individuals to perform services in support of the
Department of Defense or such other department or
agency, as the case may be.''.

SEC. 834. REQUIREMENTS REGARDING INSENSITIVE MUNITIONS.

(a) Requirement To Ensure Safety.--(1) Chapter 141 of title
10, United States Code, is amended by inserting after section
2388 the following new section:

``Sec. 2389. Ensuring safety regarding insensitive munitions

``The Secretary of Defense shall ensure, to the extent
practicable, that insensitive munitions under development or
procurement are safe throughout development and fielding when
subject to unplanned stimuli.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2388
the following new item:

``2389. Ensuring safety regarding insensitive munitions.''.

(b) Report Requirement.--At the same time that the budgets
for fiscal years 2003 through 2005 are submitted to Congress
under section 1105(a) of title 31, United States Code, the
Secretary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a
report on insensitive munitions. The reports shall include the
following:
(1) The number of waivers granted pursuant to
Department of Defense Regulation 5000.2-R (June 2001)
during the preceding fiscal year, together with a
discussion of the justifications for the waivers.
(2) Identification of the funding proposed for
insensitive munitions in the budget with which the
report is submitted, together with an explanation of
the proposed funding.

SEC. 835. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF MINIATURE
OR INSTRUMENT BALL OR ROLLER BEARINGS UNDER CERTAIN
CIRCUMSTANCES.

(a) In General.--Section 2534 of title 10, United States
Code, is amended by adding at the end the following new
subsection:
``(j) Inapplicability to Certain Contracts To Purchase Ball
Bearings or Roller Bearings.--(1) This section does not apply
with respect to a contract or subcontract to purchase items
described in subsection (a)(5) (relating to ball bearings and
roller bearings) for which--
``(A) the amount of the purchase does not exceed
$2,500;
``(B) the precision level of the ball or roller
bearings to be procured under the contract or
subcontract is rated lower than the rating known as
Annual Bearing Engineering Committee (ABEC) 5 or Roller
Bearing Engineering Committee (RBEC) 5, or an
equivalent of such rating;
``(C) at least two manufacturers in the national
technology and industrial base that are capable of
producing the ball or roller bearings have not
responded to a request for quotation issued by the
contracting activity for that contract or subcontract;
and
``(D) no bearing to be procured under the contract
or subcontract has a basic outside diameter (exclusive
of flange diameters) in excess of 30 millimeters.
``(2) Paragraph (1) does not apply to a purchase if such
purchase would result in the total amount of purchases of ball
bearings and roller bearings to satisfy requirements under
Department of Defense contracts, using the authority provided
in such paragraph, to exceed $200,000 during the fiscal year of
such purchase.''.
(b) Applicability.--Subsection (j) of such section 2534 (as
added by subsection (a)) shall apply with respect to a contract
or subcontract to purchase ball bearings or roller bearings
entered into after the date of the enactment of this Act.

SEC. 836. TEMPORARY EMERGENCY PROCUREMENT AUTHORITY TO FACILITATE THE
DEFENSE AGAINST TERRORISM OR BIOLOGICAL OR CHEMICAL
ATTACK.

(a) Increased Flexibility for Use of Streamlined
Procedures.--The following special authorities apply to
procurements of property and services by or for the Department
of Defense for which funds are obligated during fiscal year
2002 and 2003:
(1) Micropurchase and simplified acquisition
thresholds.--For any procurement of property or
services for use (as determined by the Secretary of
Defense) to facilitate the defense against terrorism or
biological or chemical attack against the United
States--
(A) the amount specified in subsections
(c), (d), and (f) of section 32 of the Office
of Federal Procurement Policy Act (41 U.S.C.
428) shall be deemed to be $15,000 in the
administration of that section with respect to
such procurement; and
(B) the term ``simplified acquisition
threshold'' means, in the case of any contract
to be awarded and performed, or purchase to be
made--
(i) inside the United States in
support of a contingency operation,
$250,000; or
(ii) outside the United States in
support of a contingency operation,
$500,000.
(2) Commercial item treatment for procurements of
biotechnology.--For any procurement of biotechnology
property or biotechnology services for use (as
determined by the Secretary of Defense) to facilitate
the defense against terrorism or biological attack
against the United States, the procurement shall be
treated as being a procurement of commercial items.
(b) Recommendations for Additional Emergency Procurement
Authority To Support Anti-Terrorism Operations.--Not later than
March 1, 2002, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report containing the Secretary's
recommendations for additional emergency procurement authority
that the Secretary (subject to the direction of the President)
determines necessary to support operations carried out to
combat terrorism.
(c) Termination of Authority.--No contract may be entered
into pursuant to the authority provided in subsection (a) after
September 30, 2003.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Duties and Functions of Department of Defense Officers

Subtitle B--Space Activities

Subtitle C--Reports

Subtitle D--Other Matters

Sec. 931. Conforming amendments relating to change of name of Military
Airlift Command to Air Mobility Command.
Sec. 932. Organizational realignment for Navy Director for Expeditionary
Warfare.

Subtitle A--Duties and Functions of Department of Defense Officers

SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND
READINESS.

(a) Establishment of Position.--(1) Chapter 4 of title 10,
United States Code, is amended by inserting after section 136
the following new section:

``Sec. 136a. Deputy Under Secretary of Defense for Personnel and
Readiness

``(a) There is a Deputy Under Secretary of Defense for
Personnel and Readiness, appointed from civilian life by the
President, by and with the advice and consent of the Senate.
``(b) The Deputy Under Secretary of Defense for Personnel
and Readiness shall assist the Under Secretary of Defense for
Personnel and Readiness in the performance of the duties of
that position. The Deputy Under Secretary of Defense for
Personnel and Readiness shall act for, and exercise the powers
of, the Under Secretary when the Under Secretary is absent or
disabled.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 136
the following new item:

``136a. Deputy Under Secretary of Defense for Personnel and
Readiness.''.

(b) Executive Level IV.--Section 5315 of title 5, United
States Code, is amended by inserting after ``Deputy Under
Secretary of Defense for Policy.'' the following:
``Deputy Under Secretary of Defense for Personnel
and Readiness.''.
(c) Reduction in Number of Assistant Secretaries of
Defense.--(1) Section 138(a) of title 10, United States Code,
is amended by striking ``nine'' and inserting ``eight''.
(2) Section 5315 of title 5, United States Code, is amended
by striking ``(9)'' after ``Assistant Secretaries of Defense''
and inserting ``(8)''.
(d) Effective Date.--The amendments made by subsection (c)
shall take effect on the date on which a person is first
appointed as Deputy Under Secretary of Defense for Personnel
and Readiness.

SEC. 902. SENSE OF CONGRESS ON FUNCTIONS OF NEW OFFICE OF FORCE
TRANSFORMATION IN THE OFFICE OF THE SECRETARY OF
DEFENSE.

(a) Findings.--Congress finds the following:
(1) The Armed Forces should give careful
consideration to implementing transformation to meet
operational challenges and exploit opportunities
resulting from changes in the threat environment and
the emergence of new technologies.
(2) The Department of Defense 2001 Quadrennial
Defense Review Report, issued by the Secretary of
Defense on September 30, 2001, states that `The purpose
of transformation is to maintain or improve U.S.
military preeminence in the face of potential
disproportionate discontinuous changes in the strategic
environment. Transformation must therefore be focused
on emerging strategic and operational challenges and
the opportunities created by these challenges.''.
(3) That report further states that ``To support
the transformation effort, and to foster innovation and
experimentation, the Department will establish a new
office reporting directly to the Secretary and Deputy
Secretary of Defense.''.
(b) Sense of Congress on Functions of Office of Force
Transformation.--It is the sense of Congress that the Director
of the Office of Force Transformation within the Office of the
Secretary of Defense should advise the Secretary on--
(1) development of force transformation strategies
to ensure that the military of the future is prepared
to dissuade potential military competitors and, if that
fails, to fight and win decisively across the spectrum
of future conflict;
(2) ensuring a continuous and broadly focused
transformation process;
(3) service and joint acquisition and
experimentation efforts, funding for experimentation
efforts, promising operational concepts and
technologies, and other transformation activities, as
appropriate; and
(4) development of service and joint operational
concepts, transformation implementation strategies, and
risk management strategies.
(c) Sense of Congress on Funding.--It is the sense of
Congress that the Secretary of Defense should consider
providing funding adequate for sponsoring selective prototyping
efforts, war games, and studies and analyses and for
appropriate staffing, as recommended by the Director of the
Office of Force Transformation referred to in subsection (b).

SEC. 903. SUSPENSION OF REORGANIZATION OF ENGINEERING AND TECHNICAL
AUTHORITY POLICY WITHIN THE NAVAL SEA SYSTEMS
COMMAND PENDING REPORT TO CONGRESSIONAL COMMITTEES.

(a) Suspension of Reorganization.--During the period
specified in subsection (b), the Secretary of the Navy may not
grant final approval for any reorganization in engineering or
technical authority policy for the Naval Sea Systems Command or
any of the subsidiary activities of that command.
(b) Report.--Subsection (a) applies during the period
beginning on the date of the enactment of this Act and ending
45 days after the date on which the Secretary submits to the
congressional defense committees a report that sets forth in
detail the Navy's plans and justification for the
reorganization of engineering and technical authority policy
within the Naval Sea Systems Command.

Subtitle B--Space Activities

SEC. 911. JOINT MANAGEMENT OF SPACE PROGRAMS.

(a) In General.--Part IV of subtitle A of title 10, United
States Code, is amended by inserting after chapter 134 the
following new chapter:

``CHAPTER 135--SPACE PROGRAMS

``Sec.
``2271. Management of space programs: joint program offices and officer
management programs.

``Sec. 2271. Management of space programs: joint program offices and
officer management programs

``(a) Joint Program Offices.--The Secretary of Defense
shall take appropriate actions to ensure, to the maximum extent
practicable, that space development and acquisition programs of
the Department of Defense are carried out through joint program
offices.
``(b) Officer Management Programs.--(1) The Secretary of
Defense shall take appropriate actions to ensure, to the
maximum extent practicable, that--
``(A) Army, Navy, and Marine Corps officers, as
well as Air Force officers, are assigned to the space
development and acquisition programs of the Department
of Defense; and
``(B) Army, Navy, and Marine Corps officers, as
well as Air Force officers, are eligible, on the basis
of qualification, to hold leadership positions within
the joint program offices referred to in subsection
(a).
``(2) The Secretary of Defense shall designate those
positions in the Office of the National Security Space
Architect of the Department of Defense (or any successor
office) that qualify as joint duty assignment positions for
purposes of chapter 38 of this title.''.
(b) Clerical Amendment.--The tables of chapters at the
beginning of such subtitle and the beginning of part IV of such
subtitle are amended by inserting after the item relating to
chapter 134 the following new item:

``135. Space Programs............................................2271''.

SEC. 912. REQUIREMENT TO ESTABLISH IN THE AIR FORCE AN OFFICER CAREER
FIELD FOR SPACE.

(a) In General.--Chapter 807 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 8084. Officer career field for space

``The Secretary of the Air Force shall establish and
implement policies and procedures to develop a career field for
officers in the Air Force with technical competence in space-
related matters to have the capabilty to--
``(1) develop space doctrine and concepts of space
operations;
``(2) develop space systems; and
``(3) operate space systems.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``8084. Officer career field for space.''.

SEC. 913. SECRETARY OF DEFENSE REPORT ON SPACE ACTIVITIES.

(a) Report.--(1) Not later than March 15, 2002, the
Secretary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on Armed Services of
the House of Representatives a report on problems in the
management and organization of the Department of Defense for
space activities that were identified in the report of the
Space Commission, including a description of the actions taken
by the Secretary to address those problems.
(2) For purposes of paragraph (1), the term ``report of the
Space Commission'' means the report of the Commission To Assess
United States National Security Space Management and
Organization, dated January 11, 2001, and submitted to Congress
under section 1623 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 815).
(b) Matters To Be Included.--The report of the Secretary of
Defense under subsection (a) shall include a description of,
and rationale for, each of the following:
(1) Actions taken by the Secretary of Defense to
realign management authorities and responsibilities for
space programs of the Department of Defense.
(2) Steps taken to--
(A) establish a career field for officers
in the Air Force with technical competence in
space-related matters, in accordance with
section 8084 of title 10, United States Code,
as added by section 912;
(B) ensure that officers in that career
field are treated fairly and objectively within
the overall Air Force officer personnel system;
and
(C) ensure that the primary responsibility
for management of that career field is assigned
appropriately.
(3) Other steps taken within the Air Force to
ensure proper priority for development of space
systems.
(4) Steps taken to ensure that the interests of the
Army, the Navy, and the Marine Corps in development and
acquisition of space systems, and in the operations of
space systems, are protected.
(5) Steps taken by the Office of the Secretary of
Defense and the military departments to ensure that the
Army, Navy, and Marine Corps continue to develop
military and civilian personnel with the required
expertise in space system development, acquisition,
management, and operation.
(6) Steps taken to ensure adequate oversight by the
Office of the Secretary of Defense of the actions of
the Under Secretary of the Air Force as the acquisition
executive for Department of Defense space programs.
(7) Steps taken to improve oversight of the level
of funding provided for space programs and the level of
personnel resources provided for space programs.

SEC. 914. COMPTROLLER GENERAL ASSESSMENT OF IMPLEMENTATION OF
RECOMMENDATIONS OF SPACE COMMISSION.

(a) Assessment.--(1) The Comptroller General shall carry
out an assessment through February 15, 2003, of the actions
taken by the Secretary of Defense in implementing the
recommendations in the report of the Space Commission that are
applicable to the Department of Defense.
(2) For purposes of paragraph (1), the term ``report of the
Space Commission'' means the report of the Commission To Assess
United States National Security Space Management and
Organization, dated January 11, 2001, and submitted to Congress
under section 1623 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 815).
(b) Reports.--Not later than February 15 of each of 2002
and 2003, the Comptroller General shall submit to the Committee
on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on the
assessment carried out under subsection (a). Each report shall
set forth the results of the assessment as of the date of such
report.

SEC. 915. SENSE OF CONGRESS REGARDING OFFICERS RECOMMENDED TO BE
APPOINTED TO SERVE AS COMMANDER OF UNITED STATES
SPACE COMMAND.

It is the sense of Congress that the position of commander
of the United States Space Command, a position of importance
and responsibility designated by the President under section
601 of title 10, United States Code, to carry the grade of
general or admiral and covered by section 604 of that title,
relating to recommendations by the Secretary of Defense for
appointment of officers to certain four-star joint officer
positions, should by filled by the best qualified officer of
the Army, Navy, Air Force, or Marine Corps, rather than by
officers from the same armed force that has traditionally
provided officers for that position.

Subtitle C--Reports

SEC. 921. REVISED REQUIREMENT FOR CHAIRMAN OF THE JOINT CHIEFS OF STAFF
TO ADVISE SECRETARY OF DEFENSE ON THE ASSIGNMENT OF
ROLES AND MISSIONS TO THE ARMED FORCES.

(a) Assessment During Quadrennial Defense Review.--Section
118(e) of title 10, United States Code, is amended--
(1) by inserting ``(1)'' after ``(e) CJCS Review.--
'';
(2) by designating the second and third sentences
as paragraph (3); and
(3) by inserting after paragraph (1), as designated
by paragraph (1) of this subsection, the following new
paragraph:
``(2) The Chairman shall include as part of that assessment
the Chairman's assessment of the assignment of functions (or
roles and missions) to the armed forces, together with any
recommendations for changes in assignment that the Chairman
considers necessary to achieve maximum efficiency of the armed
forces. In preparing the assessment under this paragraph, the
Chairman shall consider (among other matters) the following:
``(A) Unnecessary duplication of effort among the
armed forces.
``(B) Changes in technology that can be applied
effectively to warfare.''.
(b) Repeal of Requirement for Triennial Report on
Assignment of Roles and Missions.--Section 153 of such title is
amended--
(1) by striking ``(a) Planning; Advice; Policy
Formulation.--''; and
(2) by striking subsection (b).
(c) Assessment With Respect to 2001 QDR.--With respect to
the 2001 Quadrennial Defense Review, the Chairman of the Joint
Chiefs of Staff shall submit to Congress a separate assessment
of functions (or roles and missions) of the Armed Forces in
accordance with paragraph (2) of section 118(e) of title 10,
United States Code, as added by subsection (a)(3). Such
assessment shall be based on the findings in the 2001
Quadrennial Defense Review, issued by the Secretary of Defense
on September 30, 2001, and shall be submitted to Congress not
later than one year after the date of the enactment of this
Act.

SEC. 922. REVISED REQUIREMENTS FOR CONTENT OF ANNUAL REPORT ON JOINT
WARFIGHTING EXPERIMENTATION.

Section 485(b) of title 10, United States Code, is
amended--
(1) in paragraph (4)(E)--
(A) by inserting ``(by lease or by
purchase)'' after ``acquire''; and
(B) by inserting ``(including any
prototype)'' after ``or equipment''; and
(2) by adding at the end the following new
paragraph:
``(6) A specific assessment of whether there is a
need for a major force program for funding--
``(A) joint warfighting experimentation;
and
``(B) the development and acquisition of
any technology the value of which has been
empirically demonstrated through such
experimentation.''.

SEC. 923. REPEAL OF REQUIREMENT FOR ONE OF THREE REMAINING REQUIRED
REPORTS ON ACTIVITIES OF JOINT REQUIREMENTS
OVERSIGHT COUNCIL.

Section 916 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-231) is amended--
(1) in the section heading, by striking
``Semiannual Report'' and inserting ``Reports'';
(2) in subsection (a)--
(A) by striking ``Semiannual Report'' in
the subsection heading and inserting ``Reports
Required''; and
(B) by striking ``five semiannual''; and
(3) in subsection (b)--
(A) by striking ``September 1, 2002,''; and
(B) by striking the period at the end of
the last sentence and inserting ``, except that
the last report shall cover all of the
preceding fiscal year.''.

SEC. 924. REVISED JOINT REPORT ON ESTABLISHMENT OF NATIONAL
COLLABORATIVE INFORMATION ANALYSIS CAPABILITY.

(a) Revised Report.--At the same time as the submission of
the budget for fiscal year 2003 under section 1105 of title 31,
United States Code, the Secretary of Defense and the Director
of Central Intelligence shall submit to the congressional
defense committees and the congressional intelligence
committees a revised report assessing alternatives for the
establishment of a national collaborative information analysis
capability.
(b) Matters Included.--The revised report shall cover the
same matters required to be included in the DOD/CIA report,
except that the alternative architectures assessed in the
revised report shall be limited to architectures that include
the participation of all Federal agencies involved in the
collection of intelligence. The revised report shall also
identify any issues that would require legislative or
regulatory changes in order to implement the preferred
architecture identified in the revised report.
(c) Officials To Be Consulted.--The revised report shall be
prepared after consultation with all appropriate Federal
officials, including the following:
(1) The Secretary of the Treasury.
(2) The Secretary of Commerce.
(3) The Secretary of State.
(4) The Attorney General.
(5) The Director of the Federal Bureau of
Investigation.
(6) The Administrator of the Drug Enforcement
Administration.
(d) Definitions.--In this section:
(1) Dod/cia report.--The term ``DOD/CIA report''
means the joint report required by section 933 of the
Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law
106-398; 114 Stat. 1654A-237).
(2) Congressional intelligence committees.--The
term ``congressional intelligence committees'' means
the Select Committee on Intelligence of the Senate and
the Permanent Select Committee on Intelligence of the
House of Representatives.

Subtitle D--Other Matters

SEC. 931. CONFORMING AMENDMENTS RELATING TO CHANGE OF NAME OF MILITARY
AIRLIFT COMMAND TO AIR MOBILITY COMMAND.

(a) Current References in Title 10, United States Code.--
Section 2554(d) of title 10, United States Code, and section
2555(a) of such title (relating to transportation services for
international Girl Scout events) are amended by striking
``Military Airlift Command'' and inserting ``Air Mobility
Command''.
(b) Repeal of Obsolete Provision.--Section 8074 of such
title is amended by striking subsection (c).
(c) References in Title 37, United States Code.--Sections
430(c) and 432(b) of title 37, United States Code, are amended
by striking ``Military Airlift Command'' and inserting ``Air
Mobility Command''.

SEC. 932. ORGANIZATIONAL REALIGNMENT FOR NAVY DIRECTOR FOR
EXPEDITIONARY WARFARE.

Section 5038(a) of title 10, United States Code, is amended
by striking ``Office of the Deputy Chief of Naval Operations
for Resources, Warfare Requirements, and Assessments'' and
inserting ``office of the Deputy Chief of Naval Operations with
responsibility for warfare requirements and programs''.

TITLE X--GENERAL PROVISIONS

Subtitle A--Department of Defense Civilian Personnel

Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority to transfer naval vessels to certain foreign
countries.
Sec. 1012 Sale of Glomar Explorer to the lessee.
Sec. 1013. Leasing of Navy ships for university national oceanographic
laboratory system.
Sec. 1014. Increase in limitations on administrative authority of the
Navy to settle admiralty claims.

Subtitle C--Counter-Drug Activities

Subtitle D--Strategic Forces

Subtitle E--Other Department of Defense Provisions

Subtitle F--Other Matters

Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

(a) Authority To Transfer Authorizations.--(1) Upon
determination by the Secretary of Defense that such action is
necessary in the national interest, the Secretary may transfer
amounts of authorizations made available to the Department of
Defense in this division for fiscal year 2002 between any such
authorizations for that fiscal year (or any subdivisions
thereof). Amounts of authorizations so transferred shall be
merged with and be available for the same purposes as the
authorization to which transferred.
(2) The total amount of authorizations that the Secretary
may transfer under the authority of this section may not exceed
$2,000,000,000.
(b) Limitations.--The authority provided by this section to
transfer authorizations--
(1) may only be used to provide authority for items
that have a higher priority than the items from which
authority is transferred; and
(2) may not be used to provide authority for an
item that has been denied authorization by Congress.
(c) Effect on Authorization Amounts.--A transfer made from
one account to another under the authority of this section
shall be deemed to increase the amount authorized for the
account to which the amount is transferred by an amount equal
to the amount transferred.
(d) Notice to Congress.--The Secretary shall promptly
notify Congress of each transfer made under subsection (a).

SEC. 1002. [H1002]. INCORPORATION OF CLASSIFIED ANNEX.

(a) Status of Classified Annex.--The Classified Annex
prepared by the committee of conference to accompany the
conference report on the bill S. 1438 of the One Hundred
Seventh Congress and transmitted to the President is hereby
incorporated into this Act.
(b) Construction With Other Provisions of Act.--The amounts
specified in the Classified Annex are not in addition to
amounts authorized to be appropriated by other provisions of
this Act.
(c) Limitation on Use of Funds.--Funds appropriated
pursuant to an authorization contained in this Act that are
made available for a program, project, or activity referred to
in the Classified Annex may only be expended for such program,
project, or activity in accordance with such terms, conditions,
limitations, restrictions, and requirements as are set out for
that program, project, or activity in the Classified Annex.
(d) Distribution of Classified Annex.--The President shall
provide for appropriate distribution of the Classified Annex,
or of appropriate portions of the annex, within the executive
branch of the Government.

SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR
2001.

Amounts authorized to be appropriated to the Department of
Defense for fiscal year 2001 in the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398) are hereby adjusted, with respect to
any such authorized amount, by the amount by which
appropriations pursuant to such authorization were increased
(by a supplemental appropriation) or decreased (by a
rescission), or both, in title I of the Supplemental
Appropriations Act, 2001 (Public Law 107-20).

SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN
FISCAL YEAR 2002.

(a) Fiscal Year 2002 Limitation.--The total amount
contributed by the Secretary of Defense in fiscal year 2002 for
the common-funded budgets of NATO may be any amount up to, but
not in excess of, the amount specified in subsection (b)
(rather than the maximum amount that would otherwise be
applicable to those contributions under the fiscal year 1998
baseline limitation).
(b) Total Amount.--The amount of the limitation applicable
under subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of the
end of fiscal year 2001, of funds appropriated for
fiscal years before fiscal year 2002 for payments for
those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions
authorized to be made under section 2501.
(c) Authorized Amounts.--Amounts authorized to be
appropriated by titles II and III of this Act are available for
contributions for the common-funded budgets of NATO as follows:
(1) Of the amount provided in section 201(1),
$708,000 for the Civil Budget.
(2) Of the amount provided in section 301(a)(1),
$175,849,000 for the Military Budget.
(d) Definitions.--For purposes of this section:
(1) Common-funded budgets of nato.--The term
``common-funded budgets of NATO'' means the Military
Budget, the Security Investment Program, and the Civil
Budget of the North Atlantic Treaty Organization (and
any successor or additional account or program of
NATO).
(2) Fiscal year 1998 baseline limitation.--The term
``fiscal year 1998 baseline limitation'' means the
maximum annual amount of Department of Defense
contributions for common-funded budgets of NATO that is
set forth as the annual limitation in section
3(2)(C)(ii) of the resolution of the Senate giving the
advice and consent of the Senate to the ratification of
the Protocols to the North Atlantic Treaty of 1949 on
the Accession of Poland, Hungary, and the Czech
Republic (as defined in section 4(7) of that
resolution), approved by the Senate on April 30, 1998.

SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO PEACEKEEPING
OPERATIONS FOR FISCAL YEAR 2002.

(a) Limitation.--Of the amounts authorized to be
appropriated by section 301(a)(24) for the Overseas Contingency
Operations Transfer Fund--
(1) no more than $1,315,600,000 may be obligated
for incremental costs of the Armed Forces for Bosnia
peacekeeping operations; and
(2) no more than $1,528,600,000 may be obligated
for incremental costs of the Armed Forces for Kosovo
peacekeeping operations.
(b) Presidential Waiver.--The President may waive the
limitation in subsection (a)(1), or the limitation in
subsection (a)(2), after submitting to Congress the following:
(1) The President's written certification that the
waiver is necessary in the national security interests
of the United States.
(2) The President's written certification that
exercising the waiver will not adversely affect the
readiness of United States military forces.
(3) A report setting forth the following:
(A) The reasons that the waiver is
necessary in the national security interests of
the United States.
(B) The specific reasons that additional
funding is required for the continued presence
of United States military forces participating
in, or supporting, Bosnia peacekeeping
operations, or Kosovo peacekeeping operations,
as the case may be, for fiscal year 2002.
(C) A discussion of the impact on the
military readiness of United States Armed
Forces of the continuing deployment of United
States military forces participating in, or
supporting, Bosnia peacekeeping operations, or
Kosovo peacekeeping operations, as the case may
be.
(4) A supplemental appropriations request for the
Department of Defense for such amounts as are necessary
for the additional fiscal year 2002 costs associated
with United States military forces participating in, or
supporting, Bosnia or Kosovo peacekeeping operations.
(c) Peacekeeping Operations Defined.--For the purposes of
this section:
(1) The term ``Bosnia peacekeeping operations'' has
the meaning given such term in section 1004(e) of the
Strom Thurmond National Defense Authorization Act for
Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2112).
(2) The term ``Kosovo peacekeeping operations''--
(A) means the operation designated as
Operation Joint Guardian and any other
operation involving the participation of any of
the Armed Forces in peacekeeping or peace
enforcement activities in and around Kosovo;
and
(B) includes, with respect to Operation
Joint Guardian or any such other operation,
each activity that is directly related to the
support of the operation.

SEC. 1006. MAXIMUM AMOUNT FOR NATIONAL FOREIGN INTELLIGENCE PROGRAM.

The total amount authorized to be appropriated for the
National Foreign Intelligence Program for fiscal year 2002 is
the sum of the following:
(1) The total amount set forth for the National
Foreign Intelligence Program for fiscal year 2002 in
the message of the President to Congress transmitted by
the President on June 27, 2001, and printed as House
Document 107-92, captioned ``Communication of the
President of the United States Transmitting Requests
for Fiscal Year 2002 Budget Amendments for the
Department of Defense''.
(2) The total amount, if any, appropriated for the
National Foreign Intelligence Program for fiscal year
2002 pursuant to the 2001 Emergency Supplemental
Appropriations Act for Recovery from and Response to
Terrorist Attacks on the United States (Public Law 107-
38; 115 Stat. 220-221).
(3) The total amount, if any, appropriated for the
National Foreign Intelligence Program for fiscal year
2002 in any law making supplemental appropriations for
fiscal year 2002 that is enacted during the second
session of the 107th Congress.

SEC. 1007. CLARIFICATION OF APPLICABILITY OF INTEREST PENALTIES FOR
LATE PAYMENT OF INTERIM PAYMENTS DUE UNDER
CONTRACTS FOR SERVICES.

Section 1010(d) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-251) is amended by
inserting before the period at the end of the first sentence
the following: ``, and shall apply with respect to interim
payments that are due on or after such date under contracts
entered into before, on, or after that date''.

SEC. 1008. RELIABILITY OF DEPARTMENT OF DEFENSE FINANCIAL STATEMENTS.

(a) Annual Report on Reliability.--(1) Not later than
September 30 of each year but subject to subsection (f), the
Secretary of Defense shall submit to the recipients specified
in paragraph (3) a report on the reliability of the Department
of Defense financial statements, including the financial
statements of each component of the Department that is required
to prepare a financial statement under section 3515(c) of title
31, United States Code.
(2) The annual report shall contain the following:
(A) A conclusion regarding whether the policies and
procedures of the Department of Defense, and the
systems used within the Department of Defense, for the
preparation of financial statements allow the
achievement of reliability in those financial
statements.
(B) For each of the financial statements prepared
for the Department of Defense for the fiscal year in
which the report is submitted, a conclusion regarding
the expected reliability of the financial statement
(evaluated on the basis of Office of Management and
Budget guidance on financial statements), together with
a discussion of the major deficiencies to be expected
in the statement.
(C) A summary of the specific sections of the
annual Financial Management Improvement Plan of the
Department of Defense, current as of the date of the
report, that--
(i) detail the priorities, milestones, and
measures of success that apply to the
preparation of the financial statements;
(ii) detail the planned improvements in the
process for the preparation of financial
statements that are to be implemented within 12
months after the date on which the plan is
issued; and
(iii) provide an estimate of when each
financial statement will convey reliable
information.
(3) The annual report shall be submitted to the following:
(A) The Committee on Armed Services and the
Committee on Governmental Affairs of the Senate.
(B) The Committee on Armed Services and the
Committee on Government Reform of the House of
Representatives.
(C) The Director of the Office of Management and
Budget.
(D) The Secretary of the Treasury.
(E) The Comptroller General of the United States.
(4) The Secretary of Defense shall make a copy of the
annual report available to the Inspector General of the
Department of Defense.
(b) Minimization of Use of Resources for Unreliable
Financial Statements.--(1) With respect to each financial
statement for a fiscal year that the Secretary of Defense
assesses as being expected to be unreliable in the annual
report under subsection (a), the Under Secretary of Defense
(Comptroller) shall take appropriate actions to minimize,
consistent with the benefits to be derived, the resources
(including contractor support) that are used to develop,
compile, and report the financial statement.
(2) With the annual budget justifications for the
Department of Defense submitted to Congress each year, the
Under Secretary of Defense (Comptroller) shall submit, with
respect to the fiscal year in which submitted, the preceding
fiscal year, and the following fiscal year, the following
information:
(A) An estimate of the resources that the
Department of Defense is saving or expects to save as a
result of actions taken and to be taken under paragraph
(1) with respect to the preparation of financial
statements.
(B) A discussion of how the resources saved as
estimated under subparagraph (A) have been redirected
or are to be redirected from the preparation of
financial statements to the improvement of systems
underlying financial management within the Department
of Defense and to the improvement of financial
management policies, procedures, and internal controls
within the Department of Defense.
(c) Information to Auditors.--Not later than October 31 of
each year, the Under Secretary of Defense (Comptroller) and the
Assistant Secretary of each military department with
responsibility for financial management and comptroller
functions shall each provide to the auditors of the financial
statement of that official's department for the fiscal year
ending during the preceding month that official's preliminary
management representation, in writing, regarding the expected
reliability of the financial statement. The representation
shall be consistent with guidance issued by the Director of the
Office of Management and Budget and shall include the basis for
the reliability assessment stated in the representation.
(d) Limitation on Inspector General Audits.--(1) On each
financial statement that an official asserts is unreliable
under subsection (b) or (c), the Inspector General of the
Department of Defense shall only perform the audit procedures
required by generally accepted government auditing standards
consistent with any representation made by management.
(2) With the annual budget justifications for the
Department of Defense submitted to Congress each year, the
Under Secretary of Defense (Comptroller) shall submit, with
respect to the fiscal year in which submitted, the preceding
fiscal year, and the following fiscal year, information which
the Inspector General shall report to the Under Secretary, as
follows:
(A) An estimate of the resources that the Inspector
General is saving or expects to save as a result of
actions taken and to be taken under paragraph (1) with
respect to the auditing of financial statements.
(B) A discussion of how the resources saved as
estimated under subparagraph (A) have been redirected
or are to be redirected from the auditing of financial
statements to the oversight and improvement of systems
underlying financial management within the Department
of Defense and to the oversight and improvement of
financial management policies, procedures, and internal
controls within the Department of Defense.
(e) Effective Date.--The requirements of this section shall
apply with respect to financial statements for fiscal years
after fiscal year 2001 and to the auditing of those financial
statements.
(f) Termination of Applicability.--If the Secretary of
Defense certifies to the Inspector General of the Department of
Defense that the financial statement for the Department of
Defense, or a financial statement for a component of the
Department of Defense, for a fiscal year is reliable, this
section shall not apply with respect to that financial
statement or to any successive financial statement for the
Department of Defense, or for that component, as the case may
be, for any later fiscal year.

SEC. 1009. FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE COMMITTEE AND
FINANCIAL FEEDER SYSTEMS COMPLIANCE PROCESS.

(a) Executive Committee.--(1) Chapter 7 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 185. Financial Management Modernization Executive Committee

``(a) Establishment of Financial Management Modernization
Executive Committee.--(1) The Secretary of Defense shall
establish a Financial Management Modernization Executive
Committee.
``(2) The Committee shall be composed of the following:
``(A) The Under Secretary of Defense (Comptroller),
who shall be the chairman of the committee.
``(B) The Under Secretary of Defense for
Acquisition, Technology, and Logistics.
``(C) The Under Secretary of Defense for Personnel
and Readiness.
``(D) The Chief Information Officer of the
Department of Defense.
``(E) Such additional personnel of the Department
of Defense (including appropriate personnel of the
military departments and Defense Agencies) as are
designated by the Secretary.
``(3) The Committee shall be accountable to the Senior
Executive Council (composed of the Secretary of Defense, the
Deputy Secretary of Defense, the Under Secretary of Defense for
Acquisition, Technology, and Logistics, the Secretary of the
Army, the Secretary of the Navy, and the Secretary of the Air
Force).
``(b) Duties.--In addition to other matters assigned to it
by the Secretary of Defense, the Committee shall have the
following duties:
``(1) To establish a process that ensures that each
critical accounting system, financial management
system, and data feeder system of the Department of
Defense is compliant with applicable Federal financial
management and reporting requirements.
``(2) To develop a management plan for the
implementation of the financial and data feeder systems
compliance process established pursuant to paragraph
(1).
``(3) To supervise and monitor the actions that are
necessary to implement the management plan developed
pursuant to paragraph (2), as approved by the Secretary
of Defense.
``(4) To ensure that a Department of Defense
financial management enterprise architecture is
developed and maintained in accordance with--
``(A) the overall business process
transformation strategy of the Department; and
``(B) the architecture framework of the
Department for command, control,
communications, computers, intelligence,
surveillance, and reconnaissance functions.
``(5) To ensure that investments in existing or
proposed financial management systems for the
Department comply with the overall business practice
transformation strategy of the Department and the
financial management enterprise architecture developed
under paragraph (4).
``(6) To provide an annual accounting of each
financial and data feeder system investment technology
project to ensure that each such project is being
implemented at acceptable cost and within a reasonable
schedule and is contributing to tangible, observable
improvements in mission performance.
``(c) Management Plan for Implementation of Financial Data
Feeder Systems Compliance Process.--The management plan
developed under subsection (b)(2) shall include among its
principal elements at least the following elements:
``(1) A requirement for the establishment and
maintenance of a complete inventory of all budgetary,
accounting, finance, and data feeder systems that
support the transformed business processes of the
Department and produce financial statements.
``(2) A phased process (consisting of the
successive phases of Awareness, Evaluation, Renovation,
Validation, and Compliance) for improving systems
referred to in paragraph (1) that provides for mapping
financial data flow from the cognizant Department
business function source (as part of the overall
business process transformation strategy of the
Department) to Department financial statements.
``(3) Periodic submittal to the Secretary of
Defense, the Deputy Secretary of Defense, and the
Senior Executive Council (or any combination thereof)
of reports on the progress being made in achieving
financial management transformation goals and
milestones included in the annual financial management
improvement plan in 2002.
``(4) Documentation of the completion of each phase
specified in paragraph (2) of improvements made to each
accounting, finance, and data feeder system of the
Department.
``(5) Independent audit by the Inspector General of
the Department, the audit agencies of the military
departments, and private sector firms contracted to
conduct validation audits (or any combination thereof)
at the validation phase for each accounting, finance,
and data feeder system.
``(d) Data Feeder Systems.--In this section, the term `data
feeder system' has the meaning given that term in section
2222(c)(2) of this title.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``185. Financial Management Modernization Executive Committee.''.

(b) Annual Financial Management Improvement Plan.--(1)
Subsection (a) of section 2222 of title 10, United States Code,
is amended--
(A) by striking ``Biennial'' in the subsection
heading and inserting ``Annual'';
(B) by striking ``a biennial'' in the first
sentence and inserting ``an annual''; and
(C) by striking ``even-numbered'' in the second
sentence.
(2) Subsection (c) of such section is amended--
(A) by redesignating paragraph (2) as paragraph
(3); and
(B) by inserting after paragraph (1) the following
new paragraph (2):
``(2) In each such plan, the Secretary shall include the
following:
``(A) A description of the actions to be taken in
the fiscal year beginning in the year in which the plan
is submitted to implement the annual performance goals,
and the performance milestones, included in the
financial management improvement plan submitted in 2002
pursuant to paragraphs (1) and (2), respectively, of
section 1009(c) of the National Defense Authorization
Act for Fiscal Year 2002.
``(B) An estimate of the amount expended in the
fiscal year ending in the year in which the plan is
submitted to implement the financial management
improvement plan in such preceding calendar year, set
forth by system.
``(C) If an element of the financial management
improvement plan submitted in the fiscal year ending in
the year in which the plan is submitted was not
implemented, a justification for the lack of
implementation of such element.''.
(3)(A) The heading of such section is amended to read as
follows:

``Sec. 2222. Annual financial management improvement plan''.

(B) The item relating to section 2222 in the table of
sections at the beginning of chapter 131 of such title is
amended to read as follows:

``2222. Annual financial management improvement plan.''.

(c) Additional Elements for Financial Management
Improvement Plan in 2002.--In the annual financial management
improvement plan submitted under section 2222 of title 10,
United States Code, in 2002, the Secretary of Defense shall
include the following:
(1) Measurable annual performance goals for
improvement of the financial management of the
Department of Defense.
(2) Performance milestones for initiatives under
that plan for transforming the financial management
operations of the Department of Defense and for
implementing a financial management architecture for
the Department.
(3) An assessment of the anticipated annual cost of
any plans for transforming the financial management
operations of the Department of Defense and for
implementing a financial management architecture for
the Department.
(4) A discussion of the following:
(A) The roles and responsibilities of
appropriate Department officials to ensure the
supervision and monitoring of the compliance of
each accounting, finance, and data feeder
system of the Department with--
(i) the business practice
transformation strategy of the
Department;
(ii) the financial management
architecture of the Department; and
(iii) applicable Federal financial
management systems and reporting
requirements.
(B) A summary of the actions taken by the
Financial Management Modernization Executive
Committee to ensure that such systems comply
with--
(i) the business practice
transformation strategy of the
Department;
(ii) the financial management
architecture of the Department; and
(iii) applicable Federal financial
management systems and reporting
requirements.
(d) Effective Date.--Paragraph (2) of section 2222(c) of
title 10, United States Code, as added by subsection (b)(2),
shall not apply with respect to the annual financial management
improvement plan submitted under section 2222 of title 10,
United States Code, in 2002.

SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE
PROGRAMS OR COMBATING TERRORISM PROGRAMS OF THE
DEPARTMENT OF DEFENSE.

(a) Authorization.--There is hereby authorized to be
appropriated for fiscal year 2002 for the military functions of
the Department of Defense, in addition to amounts authorized to
be appropriated in titles I, II, and III, the amount of
$1,300,000,000, to be available, in accordance with subsection
(b), for the following purposes:
(1) Research, development, test, and evaluation for
ballistic missile defense programs of the Ballistic
Missile Defense Organization.
(2) Activities of the Department of Defense for
combating terrorism.
(b) Allocation by President.--(1) The amount authorized to
be appropriated by subsection (a) shall be allocated between
the purposes stated in paragraphs (1) and (2) of that
subsection in such manner as may be determined by the President
based upon the national security interests of the United
States. The amount authorized in subsection (a) shall not be
available for any other purpose.
(2) Upon an allocation of such amount by the President, the
amount so allocated shall be transferred to the appropriate
regular authorization account under this division in the same
manner as provided in section 1001. Transfers under this
paragraph shall not be counted for the purposes of section
1001(a)(2).
(3) Not later than 15 days after an allocation is made
under this subsection, the Secretary of Defense shall submit to
the congressional defense committees a report describing the
allocation and the Secretary's plan for the use by the
Department of Defense of the funds made available pursuant to
such allocation.

Subtitle B--Naval Vessels and Shipyards

SEC. 1011. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN
COUNTRIES.

(a) Transfers by Grant.--The President is authorized to
transfer vessels to foreign countries on a grant basis under
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C.
2321j) as follows:
(1) Poland.--To the Government of Poland, the
OLIVER HAZARD PERRY class guided missile frigate
WADSWORTH (FFG 9).
(2) Turkey.--To the Government of Turkey, the KNOX
class frigates CAPODANNO (FF 1093), THOMAS C. HART (FF
1092), DONALD B. BEARY (FF 1085), McCANDLESS (FF 1084),
REASONER (FF 1063), and BOWEN (FF 1079).
(b) Transfers by Sale.--The President is authorized to
transfer vessels to foreign governments and foreign
governmental entities on a sale basis under section 21 of the
Arms Export Control Act (22 U.S.C. 2761) as follows:
(1) Taiwan.--To the Taipei Economic and Cultural
Representative Office in the United States (which is
the Taiwan instrumentality designated pursuant to
section 10(a) of the Taiwan Relations Act), the KIDD
class guided missile destroyers KIDD (DDG 993),
CALLAGHAN (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG
996).
(2) Turkey.--To the Government of Turkey, the
OLIVER HAZARD PERRY class guided missile frigates
ESTOCIN (FFG 15) and SAMUEL ELIOT MORISON (FFG 13).
(c) Grants Not Counted in Annual Total of Transferred
Excess Defense Articles.--The value of a vessel transferred to
another country on a grant basis under section 516 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to
authority provided by subsection (a) shall not be counted for
the purposes of subsection (g) of that section in the aggregate
value of excess defense articles transferred to countries under
that section in any fiscal year.
(d) Costs of Transfers on Grant Basis.--Any expense
incurred by the United States in connection with a transfer
authorized by this section shall be charged to the recipient
(notwithstanding section 516(e)(1) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case of a transfer
authorized to be made on a grant basis under subsection (a).
(e) Waiver Authority.--For a vessel transferred on a grant
basis pursuant to authority provided by subsection (a)(2), the
President may waive reimbursement of charges for the lease of
that vessel under section 61(a) of the Arms Export Control Act
(22 U.S.C. 2796(a)) for a period of one year before the date of
the transfer of that vessel.
(f) Repair and Refurbishment in United States Shipyards.--
To the maximum extent practicable, the President shall require,
as a condition of the transfer of a vessel under this section,
that the country to which the vessel is transferred have such
repair or refurbishment of the vessel as is needed, before the
vessel joins the naval forces of that country, performed at a
shipyard located in the United States, including a United
States Navy shipyard.
(g) Expiration of Authority.--The authority to transfer a
vessel under this section shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.

SEC. 1012. SALE OF GLOMAR EXPLORER TO THE LESSEE.

(a) Authority.--The Secretary of the Navy may convey by
sale all right, title, and interest of the United States in and
to the vessel GLOMAR EXPLORER (AG 193) to the person who, on
the date of the enactment of this Act, is the lessee of the
vessel.
(b) Consideration.--The price for which the vessel is sold
under subsection (a) shall be a fair and reasonable amount
determined by the Secretary of the Navy.
(c) Additional Terms.--The Secretary may require such
additional terms in connection with the conveyance authorized
by this section as the Secretary considers appropriate.
(d) Proceeds of Sale.--Amounts received by the Secretary
from the sale under this section may, to the extent provided in
an appropriations Act, be credited to the appropriation
available for providing salvage facilities under section 7361
of title 10, United States Code, and are authorized to remain
available until expended for that purpose.

SEC. 1013. LEASING OF NAVY SHIPS FOR UNIVERSITY NATIONAL OCEANOGRAPHIC
LABORATORY SYSTEM.

Subsection (g) of section 2667 of title 10, United States
Code, is amended by adding at the end the following new
paragraph:
``(3) Paragraph (1) does not apply to a renewal or
extension of a lease by the Secretary of the Navy with a
selected institution for operation of a ship within the
University National Oceanographic Laboratory System if, under
the lease, each of the following applies:
``(A) Use of the ship is restricted to federally
supported research programs and to non-Federal uses
under specific conditions with approval by the
Secretary of the Navy.
``(B) Because of the anticipated value to the Navy
of the oceanographic research and training that will
result from the ship's operation, no monetary lease
payments are required from the lessee under the initial
lease or under any renewal or extension.
``(C) The lessee is required to maintain the ship
in a good state of repair, readiness, and efficient
operating condition, conform to all applicable
regulatory requirements, and assume full responsibility
for the safety of the ship, its crew, and scientific
personnel aboard.''.

SEC. 1014. INCREASE IN LIMITATIONS ON ADMINISTRATIVE AUTHORITY OF THE
NAVY TO SETTLE ADMIRALTY CLAIMS.

(a) Admiralty Claims Against the United States.--Section
7622 of title 10, United States Code, is amended--
(1) in subsections (a) and (b), by striking
``$1,000,000'' and inserting ``$15,000,000''; and
(2) in subsection (c), by striking ``$100,000'' and
inserting ``$1,000,000''.
(b) Admiralty Claims by the United States.--Section 7623 of
such title is amended--
(1) in subsection (a)(2), by striking
``$1,000,000'' and inserting ``$15,000,000''; and
(2) in subsection (c), by striking ``$100,000'' and
inserting ``$1,000,000''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to any claim accruing on or after
February 1, 2001.

Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION AND RESTATEMENT OF AUTHORITY TO PROVIDE DEPARTMENT
OF DEFENSE SUPPORT FOR COUNTER-DRUG ACTIVITIES OF
OTHER GOVERNMENTAL AGENCIES.

Section 1004 of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) is
amended to read as follows:

``SEC. 1004. ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES

``(a) Support to Other Agencies.--During fiscal years 2002
through 2006, the Secretary of Defense may provide support for
the counter-drug activities of any other department or agency
of the Federal Government or of any State, local, or foreign
law enforcement agency for any of the purposes set forth in
subsection (b) if such support is requested--
``(1) by the official who has responsibility for
the counter-drug activities of the department or agency
of the Federal Government, in the case of support for
other departments or agencies of the Federal
Government;
``(2) by the appropriate official of a State or
local government, in the case of support for State or
local law enforcement agencies; or
``(3) by an appropriate official of a department or
agency of the Federal Government that has counter-drug
responsibilities, in the case of support for foreign
law enforcement agencies.
``(b) Types of Support.--The purposes for which the
Secretary of Defense may provide support under subsection (a)
are the following:
``(1) The maintenance and repair of equipment that
has been made available to any department or agency of
the Federal Government or to any State or local
government by the Department of Defense for the
purposes of--
``(A) preserving the potential future
utility of such equipment for the Department of
Defense; and
``(B) upgrading such equipment to ensure
compatibility of that equipment with other
equipment used by the Department of Defense.
``(2) The maintenance, repair, or upgrading of
equipment (including computer software), other than
equipment referred to in paragraph (1) for the purpose
of--
``(A) ensuring that the equipment being
maintained or repaired is compatible with
equipment used by the Department of Defense;
and
``(B) upgrading such equipment to ensure
the compatibility of that equipment with
equipment used by the Department of Defense.
``(3) The transportation of personnel of the United
States and foreign countries (including per diem
expenses associated with such transportation), and the
transportation of supplies and equipment, for the
purpose of facilitating counter-drug activities within
or outside the United States.
``(4) The establishment (including an unspecified
minor military construction project) and operation of
bases of operations or training facilities for the
purpose of facilitating counter-drug activities of the
Department of Defense or any Federal, State, or local
law enforcement agency within or outside the United
States or counter-drug activities of a foreign law
enforcement agency outside the United States.
``(5) Counter-drug related training of law
enforcement personnel of the Federal Government, of
State and local governments, and of foreign countries,
including associated support expenses for trainees and
the provision of materials necessary to carry out such
training.
``(6) The detection, monitoring, and communication
of the movement of--
``(A) air and sea traffic within 25 miles
of and outside the geographic boundaries of the
United States; and
``(B) surface traffic outside the
geographic boundary of the United States and
within the United States not to exceed 25 miles
of the boundary if the initial detection
occurred outside of the boundary.
``(7) Construction of roads and fences and
installation of lighting to block drug smuggling
corridors across international boundaries of the United
States.
``(8) Establishment of command, control,
communications, and computer networks for improved
integration of law enforcement, active military, and
National Guard activities.
``(9) The provision of linguist and intelligence
analysis services.
``(10) Aerial and ground reconnaissance.
``(c) Limitation on Counter-Drug Requirements.--The
Secretary of Defense may not limit the requirements for which
support may be provided under subsection (a) only to critical,
emergent, or unanticipated requirements.
``(d) Contract Authority.--In carrying out subsection (a),
the Secretary of Defense may acquire services or equipment by
contract for support provided under that subsection if the
Department of Defense would normally acquire such services or
equipment by contract for the purpose of conducting a similar
activity for the Department of Defense.
``(e) Limited Waiver of Prohibition.--Notwithstanding
section 376 of title 10, United States Code, the Secretary of
Defense may provide support pursuant to subsection (a) in any
case in which the Secretary determines that the provision of
such support would adversely affect the military preparedness
of the United States in the short term if the Secretary
determines that the importance of providing such support
outweighs such short-term adverse effect.
``(f) Conduct of Training or Operation To Aid Civilian
Agencies.--In providing support pursuant to subsection (a), the
Secretary of Defense may plan and execute otherwise valid
military training or operations (including training exercises
undertaken pursuant to section 1206(a) of the National Defense
Authorization Act for Fiscal Years 1990 and 1991 (Public Law
101-189; 103 Stat. 1564)) for the purpose of aiding civilian
law enforcement agencies.
``(g) Relationship to Other Laws.--(1) The authority
provided in this section for the support of counter-drug
activities by the Department of Defense is in addition to, and
except as provided in paragraph (2), not subject to the
requirements of chapter 18 of title 10, United States Code.
``(2) Support under this section shall be subject to the
provisions of section 375 and, except as provided in subsection
(e), section 376 of title 10, United States Code.
``(h) Congressional Notification of Facilities Projects.--
(1) When a decision is made to carry out a military
construction project described in paragraph (2), the Secretary
of Defense shall submit to the congressional defense committees
written notice of the decision, including the justification for
the project and the estimated cost of the project. The project
may be commenced only after the end of the 21-day period
beginning on the date on which the written notice is received
by Congress.
``(2) Paragraph (1) applies to an unspecified minor
military construction project that--
``(A) is intended for the modification or repair of
a Department of Defense facility for the purpose set
forth in subsection (b)(4); and
``(B) has an estimated cost of more than
$500,000.''.

SEC. 1022. EXTENSION OF REPORTING REQUIREMENT REGARDING DEPARTMENT OF
DEFENSE EXPENDITURES TO SUPPORT FOREIGN COUNTER-
DRUG ACTIVITIES.

Section 1022 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-255) is amended--
(1) by inserting ``and April 15, 2002,'' after
``January 1, 2001,''; and
(2) by striking ``fiscal year 2000'' and inserting
``the preceding fiscal year''.

SEC. 1023. AUTHORITY TO TRANSFER TRACKER AIRCRAFT CURRENTLY USED BY
ARMED FORCES FOR COUNTER-DRUG PURPOSES.

(a) Transfer Authority.--The Secretary of Defense may
transfer to the administrative jurisdiction and operational
control of another Federal agency all Tracker aircraft in the
inventory of the Department of Defense.
(b) Effect of Failure To Transfer.--If the transfer
authority provided by subsection (a) is not exercised by the
Secretary of Defense by September 30, 2002, any Tracker
aircraft remaining in the inventory of the Department of
Defense may not be used by the Armed Forces for counter-drug
purposes after that date.

SEC. 1024. LIMITATION ON USE OF FUNDS FOR OPERATION OF TETHERED
AEROSTAT RADAR SYSTEM PENDING SUBMISSION OF
REQUIRED REPORT.

Not more than 50 percent of the funds appropriated or
otherwise made available for fiscal year 2002 for operation of
the Tethered Aerostat Radar System, which is used by the Armed
Forces in maritime, air, and land counter-drug detection and
monitoring, may be obligated or expended until such time as the
Secretary of Defense submits to Congress the report on the
status of the Tethered Aerostat Radar System required by
section 1025 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-256).

Subtitle D--Strategic Forces

SEC. 1031. REPEAL OF LIMITATION ON RETIREMENT OR DISMANTLEMENT OF
STRATEGIC NUCLEAR DELIVERY SYSTEMS.

Section 1302 of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948) is
repealed.

SEC. 1032. AIR FORCE BOMBER FORCE STRUCTURE.

(a) Limitation.--None of the funds available to the
Department of Defense for fiscal year 2002 may be obligated or
expended for retiring or dismantling any of the 93 B-1B Lancer
bombers in service as of June 1, 2001, or for transferring or
reassigning any of those aircraft from the unit or facility to
which assigned as of that date, until 15 days after the
Secretary of the Air Force submits to the Committee on Armed
Services of the Senate and the Committee on Armed Services of
the House of Representatives a report on the Air Force bomber
force structure.
(b) Matters To Be Included.--The report under subsection
(a) shall set forth the following:
(1) The Air Force plan for the modernization of the
B1-B aircraft fleet, including a transition plan for
implementation of that modernization plan and a
description of the basing options for the aircraft in
that fleet.
(2) The amount and type of bomber force structure
in the Air Force appropriate to meet the requirements
of the national security strategy of the United States.
(3) Specifications of new missions to be assigned
to the National Guard units that currently fly B-1
aircraft and the transition of those units and their
facilities from the current B-1 mission to their future
missions.
(4) A description of the potential effect of the
proposed consolidation and reduction of the B-1 fleet
on other National Guard units in the affected States.
(5) A justification of the cost and projected
savings of consolidating and reducing the B-1 fleet.
(c) Amount and Type of Bomber Force Structure Defined.--In
this section, the term ``amount and type of bomber force
structure'' means the number of B-2 aircraft, B-52 aircraft,
and B-1 aircraft that are required to carry out the current
national security strategy.

SEC. 1033. ADDITIONAL ELEMENT FOR REVISED NUCLEAR POSTURE REVIEW.

Section 1041(b) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-262) is amended by adding
at the end the following new paragraph:
``(7) The possibility of deactivating or dealerting
nuclear warheads or delivery systems immediately, or
immediately after a decision to retire any specific
warhead, class of warheads, or delivery system.''.

SEC. 1034. REPORT ON OPTIONS FOR MODERNIZATION AND ENHANCEMENT OF
MISSILE WING HELICOPTER SUPPORT.

(a) Report Required.--The Secretary of Defense shall
prepare a report regarding the options for providing the
helicopter support missions for the Air Force intercontinental
ballistic missile wings at Minot Air Force Base, North Dakota,
Malmstrom Air Force Base, Montana, and F.E. Warren Air Force
Base, Wyoming, for as long as these missions are required. The
report shall include the Secretary's recommendations on a
preferred option.
(b) Options.--Options to be reviewed under subsection (a)
include the following:
(1) The current plan of the Air Force for
replacement or modernization of UH-1N helicopters
currently flown by the Air Force at the missile wings.
(2) Replacement of the UH-1N helicopters currently
flown by the Air Force with UH-60 Black Hawk
helicopters, the UH-1Y helicopter, or another platform.
(3) Replacement of the UH-1N helicopters with UH-60
helicopters and transition of the mission to the Army
National Guard, as detailed in the Air Force Space
Command/Army National Guard plan entitled ``ARNG
Helicopter Support to Air Force Space Command'' and
dated November 2000.
(4) Replacement of the UH-1N helicopters with UH-60
helicopters or another platform, and establishment of
composite units combining active duty Air Force and
Army National Guard personnel.
(5) Such other options as the Secretary of Defense
considers appropriate.
(c) Factors.--Factors to be considered in preparing the
report under subsection (a) include the following:
(1) Any implications of transferring the helicopter
support missions on the command and control of, and
responsibility for, missile field force protection.
(2) Current and future operational requirements,
and the capabilities of the UH-1N or UH-60 helicopter
or other aircraft to meet such requirements.
(3) Cost, with particular attention to
opportunities to realize efficiencies over the long
run.
(4) Implications for personnel training and
retention.
(5) Evaluation of the assumptions used in the plan
specified in subsection (b)(3).
(d) Consideration.--In preparing the report under
subsection (a), the Secretary of Defense shall consider
carefully the views of the Secretary of the Army, the Secretary
of the Air Force, the commander of the United States Strategic
Command, and the Chief of the National Guard Bureau.
(e) Submission of Report.--The report required by
subsection (a) shall be submitted to the congressional defense
committees not later than the date on which the President
submits to Congress the budget under section 1105 of title 31,
United States Code, for fiscal year 2003.

Subtitle E--Other Department of Defense Provisions

SEC. 1041. SECRETARY OF DEFENSE RECOMMENDATION ON NEED FOR DEPARTMENT
OF DEFENSE REVIEW OF PROPOSED FEDERAL AGENCY
ACTIONS TO CONSIDER POSSIBLE IMPACT ON NATIONAL
DEFENSE.

(a) Recommendation on Need for Defense Impact Review
Process.--The Secretary of Defense shall submit to the
President the Secretary's recommendation as to whether there
should be established within the executive branch a defense
impact review process. The Secretary shall submit a copy of
such recommendation to Congress.
(b) Defense Impact Review Process.--(1) For purposes of
this section, the term ``defense impact review process'' means
a formal process within the executive branch--
(A) to provide for review by the Department of
Defense of certain proposed actions of other Federal
departments and agencies to identify any reasonably
foreseeable significant adverse impact of such a
proposed action on national defense; and
(B) when such a review indicates that a proposed
agency action may have such an adverse impact--
(i) to afford the Secretary of Defense a
timely opportunity to make recommendations for
means to eliminate or mitigate any such adverse
impact; and
(ii) to afford an opportunity for those
recommendations to be given reasonable and
timely consideration by the agency to which
provided.
(2) For purposes of such a review process, the proposed
agency actions subject to review would be those for which a
significant adverse impact on national defense is reasonably
foreseeable and that meet such additional criteria as may be
specified by the Secretary of Defense.
(c) Time for Submission of Recommendation.--The Secretary
shall submit the Secretary's recommendation under subsection
(a) not later than 180 days after the date of the enactment of
this Act.

SEC. 1042. DEPARTMENT OF DEFENSE REPORTS TO CONGRESS TO BE ACCOMPANIED
BY ELECTRONIC VERSION UPON REQUEST.

(a) In General.--Chapter 23 of title 10, United States
Code, is amended by inserting after the table of sections the
following new section:

``Sec. 480. Reports to Congress: submission in electronic form

``(a) Requirement.--Whenever the Secretary of Defense or
any other official of the Department of Defense submits to
Congress (or any committee of either House of Congress) a
report that the Secretary (or other official) is required by
law to submit, the Secretary (or other official) shall, upon
request by any committee of Congress to which the report is
submitted or referred, provide to Congress (or each such
committee) a copy of the report in an electronic medium.
``(b) Exception.--Subsection (a) does not apply to a report
submitted in classified form.
``(c) Definition.--In this section, the term `report'
includes any certification, notification, or other
communication in writing.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting before the
item relating to section 481 the following new item:

``480. Reports to Congress: submission in electronic form.''.

SEC. 1043. DEPARTMENT OF DEFENSE GIFT AUTHORITIES.

(a) Authority To Make Loans and Gifts.--(1) Subsection (a)
of section 7545 of title 10, United States Code, is amended by
striking ``(a) Subject to'' and all that follows through ``to--
'' and inserting the following:
``(a) Authority To Make Loans and Gifts.--The Secretary of
the Navy may lend or give, without expense to the United
States, items described in subsection (b) that are not needed
by the Department of the Navy to any of the following:''.
(2) Such subsection is further amended--
(A) by capitalizing the first letter after the
paragraph designation in each of paragraphs (1) through
(12);
(B) by striking the semicolon at the end of
paragraphs (1) through (10) and inserting a period;
(C) by striking ``; or'' at the end of paragraph
(11) and inserting a period;
(D) in paragraph (5), by striking ``World War I or
World War II'' and inserting ``a foreign war'';
(E) in paragraph (6), by striking ``soldiers'
monument'' and inserting ``servicemen's monument''; and
(F) in paragraph (8), by inserting ``or memorial''
after ``museum''.
(b) Additional Items Authorized To Be Donated by Secretary
of the Navy.--Such section is further amended--
(1) by redesignating subsections (b) and (c) as
subsections (d) and (e), respectively;
(2) by inserting after subsection (a) the following
new subsections:
``(b) Items Eligible for Disposal.--This section applies to
the following types of property held by the Department of the
Navy:
``(1) Captured, condemned, or obsolete ordnance
material.
``(2) Captured, condemned, or obsolete combat or
shipboard material.
``(c) Regulations.--A loan or gift made under this section
shall be subject to regulations prescribed by the Secretary and
to regulations under section 205 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 486).''; and
(3) by adding at the end the following new
subsection:
``(f) Authority To Transfer a Portion of a Vessel.--The
Secretary may lend, give, or otherwise transfer any portion of
the hull or superstructure of a vessel stricken from the Naval
Vessel Register and designated for scrapping to a qualified
organization specified in subsection (a). The terms and
conditions of an agreement for the transfer of a portion of a
vessel under this section shall include a requirement that the
transferee will maintain the material conveyed in a condition
that will not diminish the historical value of the material or
bring discredit upon the Navy.''.
(c) Clerical Amendments.--Such section is further amended--
(1) in subsection (d) (as redesignated by
subsection (b)(1)), by inserting ``Maintenance of the
Records of the Government.--'' after the subsection
designation; and
(2) in subsection (e) (as redesignated by
subsection (b)(1)), by inserting ``Alternative
Authorities To Make Gifts or Loans.--'' after the
subsection designation.
(d) Conforming Amendments.--Section 2572(a) of such title
is amended--
(1) in paragraph (1), by inserting ``, county, or
other political subdivision of a State'' before the
period at the end;
(2) in paragraph (2), by striking ``soldiers'
monument'' and inserting ``servicemen's monument''; and
(3) in paragraph (4), by inserting ``or memorial''
after ``An incorporated museum''.

SEC. 1044. ACCELERATION OF RESEARCH, DEVELOPMENT, AND PRODUCTION OF
MEDICAL COUNTERMEASURES FOR DEFENSE AGAINST
BIOLOGICAL WARFARE AGENTS.

(a) Aggressive Program Required.--(1) The Secretary of
Defense shall carry out a program to aggressively accelerate
the research, development, testing, and licensure of new
medical countermeasures for defense against the biological
warfare agents that are the highest threat.
(2) The program shall include the following activities:
(A) As the program's first priority, investment in
multiple new technologies for medical countermeasures
for defense against the biological warfare agents that
are the highest threat, including for the prevention
and treatment of anthrax.
(B) Leveraging of ideas and technologies from the
biological technology industry.
(b) Study Required.--(1) The Secretary of Defense shall
enter into a contract with the Institute of Medicine and the
National Research Council under which the Institute and
Council, in consultation with the Secretary, shall carry out a
study of the review and approval process for new medical
countermeasures for biological warfare agents. The purpose of
the study shall be to identify--
(A) new approaches to accelerating such process;
and
(B) definitive and reasonable methods for assuring
the agencies responsible for regulating such
countermeasures that such countermeasures will be
effective in preventing disease in humans or in
providing safe and effective therapy against such
agents.
(2) Not later than June 1, 2002, the Institute and Council
shall jointly submit to Congress a report on the results of the
study.
(c) Facility for Production of Vaccines.--(1) Subject to
paragraph (2) and to the availability of funds for such
purposes appropriated pursuant to an authorization of
appropriations, the Secretary of Defense may--
(A) design and construct a facility on a Department
of Defense installation for the production of vaccines
to meet the requirements of the Department of Defense
to prevent or mitigate the physiological effects of
exposure to biological warfare agents;
(B) operate that facility;
(C) qualify and validate that facility for the
production of vaccines in accordance with the
requirements of the Food and Drug Administration; and
(D) contract with a private-sector source for the
production of vaccines in that facility.
(2) The authority under paragraph (1)(A) to construct a
facility may be exercised only to the extent that a project for
such construction is authorized by law in accordance with
section 2802 of title 10, United States Code.
(3) The Secretary shall use competitive procedures under
chapter 137 of title 10, United States Code, to enter into
contracts to carry out subparagraphs (A), (B), and (D) of
paragraph (1).
(d) Plan Required.--(1) The Secretary shall develop a long-
range plan to provide for the production and acquisition of
vaccines to meet the requirements of the Department of Defense
to prevent or mitigate the physiological effects of exposure to
biological warfare agents.
(2) The plan shall include the following:
(A) An evaluation of the need for one or more
vaccine production facilities that are specifically
dedicated to meeting the requirements of the Department
of Defense and other national interests.
(B) An evaluation of the options for the means of
production of such vaccines, including--
(i) use of public facilities, private
facilities, or a combination of public and
private facilities; and
(ii) management and operation of the
facilities by the Federal Government, one or
more private persons, or a combination of the
Federal Government and one or more private
persons.
(C) A specification of the means that the Secretary
determines is most appropriate for the production of
such vaccines.
(3) The Secretary shall ensure that the plan is consistent
with the requirement for safe and effective vaccines approved
by the Food and Drug Administration.
(4) In preparing the plan, the Secretary shall--
(A) consider and, as the Secretary determines
appropriate, include the information compiled and the
analyses developed in preparing the reports required by
sections 217 and 218 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat.
1654A-36, 1654A-37); and
(B) consult with the heads of other appropriate
departments and agencies of the Federal Government.
(e) Report.--Not later than February 1, 2002, the Secretary
shall submit to the congressional defense committees a report
on the plan required by subsection (d). The report shall
include, at a minimum, the contents of the plan and the
following matters:
(1) A description of the policies and requirements
of the Department of Defense regarding acquisition and
use of such vaccines.
(2) The estimated schedule for the acquisition of
such vaccines in accordance with the plan.
(3) A discussion of the options considered under
subsection (d)(2)(B) for the means of production of
such vaccines.
(4) The Secretary's recommendations for the most
appropriate course of action to meet the requirements
specified in subsection (d)(1), together with the
justification for such recommendations and the long-
term cost of implementing such recommendations.
(f) Funding.--Of the amount authorized to be appropriated
under section 201(4) for research, development, test, and
evaluation, Defense-wide, $5,000,000 may be available in
Program Element 62384BP, and $5,000,000 may be available in
Program Element 63384BP, for the program required by subsection
(a).

SEC. 1045. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR MILITARY
PERSONNEL AND CIVILIAN EMPLOYEES OF THE DEPARTMENT
OF DEFENSE.

Not later than 120 days after the date of the enactment of
this Act, the Secretary of Defense shall submit to Congress a
report on the requirements of the Department of Defense,
including the reserve components, regarding chemical and
biological protective equipment. The report shall set forth the
following:
(1) A description of any current shortfalls with
respect to requirements regarding chemical and
biological protective equipment for military personnel,
whether for individuals or units.
(2) An assessment of what should be the appropriate
level of protection for civilian employees of the
Department of Defense against chemical and biological
attack.
(3) A plan for providing required chemical and
biological protective equipment for military personnel
and civilian employees of the Department of Defense.
(4) An assessment of the costs associated with
carrying out the plan described in paragraph (3).

SEC. 1046. SALE OF GOODS AND SERVICES BY NAVAL MAGAZINE, INDIAN ISLAND,
ALASKA.

(a) Sale Authorized.--Subject to subsections (c) and (d) of
section 2563 of title 10, United States Code, the Secretary of
the Navy may sell to a person outside the Department of Defense
any article or service provided by the Naval Magazine, Indian
Island, Alaska, that is not available from a United States
commercial source.
(b) Crediting of Proceeds.--The proceeds from the sale of
any article or service under this section shall be credited to
the appropriation supporting the maintenance and operation of
the Naval Magazine, Indian Island, for the fiscal year in which
the proceeds are received.

SEC. 1047. REPORT ON PROCEDURES AND GUIDELINES FOR EMBARKATION OF
CIVILIAN GUESTS ON NAVAL VESSELS FOR PUBLIC AFFAIRS
PURPOSES.

Not later than February 1, 2002, the Secretary of the Navy
shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of
Representatives a report setting forth in detail the procedures
and guidelines of the Navy for the embarkation of civilian
guests on naval vessels for public affairs purposes. The report
shall include the following:
(1) Procedures for nominating and approving
civilian guests for embarkation on naval vessels.
(2) Procedures for ensuring that civilian guest
embarkations are conducted only as part of regularly
scheduled operations.
(3) Guidelines regarding the operation of equipment
by civilian guests on naval vessels.
(4) Any other procedures or guidelines the
Secretary considers necessary or appropriate to ensure
that operational readiness and safety are not hindered
by activities related to the embarkation of civilian
guests on naval vessels.

SEC. 1048. TECHNICAL AND CLERICAL AMENDMENTS.

(a) Title 10, United States Code.--Title 10, United States
Code, is amended as follows:
(1) The tables of chapters at the beginning of
subtitle A, and at the beginning of part II of subtitle
A, are each amended by striking the period after
``1111'' in the item relating to chapter 56.
(2) Section 119(g)(2) is amended by striking
``National Security Subcommittee'' and inserting
``Subcommittee on Defense''.
(3) Section 130c(b)(3)(C) is amended by striking
``subsection (f)'' and inserting ``subsection (g)''.
(4) Section 176(a)(3) is amended by striking
``Chief Medical Director'' and inserting ``Under
Secretary for Health''.
(5)(A) Section 503(c) is amended in paragraph
(6)(A)(i) by striking ``14101(18)'' and ``8801(18)''
and inserting ``14101'' and ``8801'', respectively.
(B) The amendment made by subparagraph (A) shall
take effect on July 1, 2002, immediately after the
amendment to such section effective that date by
section 563(a) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398; 114 Stat. 1654A-131).
(6) Section 663(e) is amended--
(A) by striking ``Armed Forces Staff
College'' in paragraph (1) and inserting
``Joint Forces Staff College''; and
(B) by striking ``Armed Forces Staff
College'' and inserting ``Joint Forces Staff
College''.
(7) Section 667(17) is amended by striking ``Armed
Forces Staff College'' both places it appears and
inserting ``Joint Forces Staff College''.
(8) Section 874(a) is amended by inserting after
``a sentence of confinement for life without
eligibility for parole'' the following: ``that is
adjudged for an offense committed after October 29,
2000''.
(9) Section 1056(c)(2) is amended by striking ``,
not later than September 30, 1991,''.
(10) The table of sections at the beginning of
chapter 55 is amended by transferring the item relating
to section 1074i, as inserted by section 758(b) of the
Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted by Public Law 106-398; 114
Stat. 1654A-200), so as to appear after the item
relating to section 1074h.
(11) Section 1097a(e) is amended by striking
``section 1072'' and inserting ``section 1072(2)''.
(12) Sections 1111(a) and 1114(a)(1) are each
amended by striking ``hereafter'' and inserting
``hereinafter''.
(13) Section 1116 is amended--
(A) in subsection (a)(2)(B), by inserting
an open parenthesis before ``other than for
training''; and
(B) in subsection (b)(2)(D), by striking
``section 111(c)(4)'' and inserting ``section
1115(c)(4)''.
(14) The heading for subchapter II of chapter 75 is
transferred within that chapter so as to appear before
the table of sections at the beginning of that
subchapter (as if the amendment made by section
721(c)(1) of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 694) had
inserted that heading following section 1471 instead of
before section 1475).
(15) Section 1611(d) is amended by striking
``with''.
(16) Section 2166(e)(9) is amended by striking
``App. 2'' and inserting ``App.''.
(17) Section 2323(a)(1)(C) is amended--
(A) by striking ``section 1046(3)'' and
inserting ``section 365(3)'';
(B) by striking ``20 U.S.C. 1135d-5(3)''
and inserting ``20 U.S.C. 1067k''; and
(C) by striking ``, which, for the purposes
of this section'' and all that follows through
the period at the end and inserting a period.
(18) Section 2375(b) is amended by inserting ``(41
U.S.C. 430)'' after ``section 34 of the Office of
Federal Procurement Policy Act''.
(19) Section 2376(1) is amended by inserting ``(41
U.S.C. 403)'' after ``section 4 of the Office of
Federal Procurement Policy Act''.
(20) Section 2410f(a) is amended by inserting after
``inscription'' the following: ``, or another
inscription with the same meaning,''.
(21) Section 2461a(a)(2) is amended by striking
``effeciency'' and inserting ``efficiency''.
(22) Section 2467 is amended--
(A) in subsection (a)(2)--
(i) by striking ``, United States
Code'' in subparagraph (A); and
(ii) by striking ``such'' in
subparagraphs (B) and (C); and
(B) in subsection (b)(2)(A), by striking
``United States Code,''.
(23) Section 2535 is amended--
(A) in subsection (a)--
(i) by striking ``intent of
Congress'' and inserting ``intent of
Congress--'';
(ii) by realigning clauses (1),
(2), (3), and (4) so that each such
clause appears as a separate paragraph
indented two ems from the left margin;
and
(iii) in paragraph (1), as so
realigned, by striking ``Armed Forces''
and inserting ``armed forces'';
(B) in subsection (b)(1)--
(i) by striking ``in this section,
the Secretary is authorized and
directed to--'' and inserting ``in
subsection (a), the Secretary of
Defense shall--''; and
(ii) by striking ``defense
industrial reserve'' in subparagraph
(A) and inserting ``Defense Industrial
Reserve''; and
(C) in subsection (c)--
(i) by striking paragraph (1);
(ii) by redesignating paragraph (2)
as paragraph (1) and in that
paragraph--
(I) by striking ``means''
and inserting ``means--'';
(II) by realigning clauses
(A), (B), and (C) so that each
such clause appears as a
separate subparagraph indented
four ems from the left margin;
and
(III) by inserting ``and''
at the end of subparagraph (B),
as so realigned; and
(iii) by redesignating paragraph
(3) as paragraph (2).
(24) Section 2541c is amended by striking
``subtitle'' both places it appears in the matter
preceding paragraph (1) and inserting ``subchapter''.
(25) The second section 2582, added by section 1(a)
of Public Law 106-446 (114 Stat. 1932), is redesignated
as section 2583, and the item relating to that section
in the table of sections at the beginning of chapter
153 is revised to conform to such redesignation.
(26)(A) Section 2693(a) is amended--
(i) in the matter preceding paragraph (1),
by inserting ``of Defense'' after
``Secretary''; and
(ii) in paragraph (3)--
(I) by inserting ``to the Secretary
of Defense'' after ``certifies'';
(II) by inserting ``(42 U.S.C.
3762a)'' after ``of 1968''; and
(III) by striking ``to the public
agencies referred to in section
515(a)(1) or 515(a)(3) of title I of
such Act'' and inserting ``to a public
agency referred to in paragraph (1) or
(3) of subsection (a) of such
section''.
(B)(i) The heading of such section is amended to
read as follows:

``Sec. 2693. Conveyance of certain property: Department of Justice
correctional options program''.

(ii) The item relating to such section in the table
of sections at the beginning of chapter 159 is amended
to read as follows:

``2693. Conveyance of certain property: Department of Justice
correctional options program.''.

(27) Section 3014(f)(3) is amended by striking
``the number equal to'' and all that follows and
inserting ``67.''.
(28) Section 5014(f)(3) is amended by striking
``the number equal to'' and all that follows and
inserting ``74.''.
(29) Section 8014(f)(3) is amended by striking
``the number equal to'' and all that follows and
inserting ``60.''.
(30) Section 9783(e)(1) is amended by striking
``40101(a)(2)'' and inserting ``40102(a)(2)''.
(31) Section 12741(a)(2) is amended by striking
``received'' and inserting ``receive''.
(b) Amendments Relating to Change in Title of Under
Secretary of Defense for Acquisition, Technology, and
Logistics.--Title 10, United States Code, is further amended as
follows:
(1) Section 133a(b) is amended by striking ``shall
assist the Under Secretary of Defense for Acquisition
and Technology'' and inserting ``shall assist the Under
Secretary of Defense for Acquisition, Technology, and
Logistics''.
(2) The following provisions are each amended by
striking ``Under Secretary of Defense for Acquisition
and Technology'' and inserting ``Under Secretary of
Defense for Acquisition, Technology, and Logistics'':
sections 139(c), 139(g) (as redesignated by section
263), 171(a)(3), 179(a)(1), 1702, 1703, 1707(a),
1722(a), 1722(b)(2)(B), 1735(c)(1), 1737(c)(1),
1737(c)(2)(B), 1741(b), 1746(a), 1761(b)(4), 1763,
2302c(a)(2), 2304(f)(1)(B)(iii), 2304(f)(6)(B),
2311(c)(1), 2311(c)(2)(B), 2350a(e)(1)(A),
2350a(e)(2)(B), 2350a(f)(1), 2399(b)(3), 2435(b),
2435(d)(2), 2521(a), and 2534(i)(3).
(3)(A) The heading for section 1702 is amended to
read as follows:

``Sec. 1702. Under Secretary of Defense for Acquisition, Technology,
and Logistics: authorities and responsibilities''.

(B) The item relating to section 1702 in the table
of sections at the beginning of subchapter I of chapter
87 is amended to read as follows:

``1702. Under Secretary of Defense for Acquisition, Technology, and
Logistics: authorities and responsibilities.''.

(4) Section 2503(b) is amended by striking ``Under
Secretary of Defense for Acquisition'' and inserting
``Under Secretary of Defense for Acquisition,
Technology, and Logistics''.
(c) Amendments To Substitute Calendar Dates for Date-of-
Enactment References.--Title 10, United States Code, is further
amended as follows:
(1) Section 130c(d)(1) is amended by striking ``the
date of the enactment of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001'' and
inserting ``October 30, 2000,''.
(2) Section 184(a) is amended by striking ``the
date of the enactment of this section,'' and inserting
``October 30, 2000,''.
(3) Section 986(a) is amended by striking ``the
date of the enactment of this section,'' and inserting
``October 30, 2000,''.
(4) Section 1074g(a)(8) is amended by striking
``the date of the enactment of this section'' and
inserting ``October 5, 1999,''.
(5) Section 1079(h)(2) is amended by striking ``the
date of the enactment of this paragraph'' and inserting
``February 10, 1996,''.
(6) Section 1206(5) is amended by striking ``the
date of the enactment of the National Defense
Authorization Act for Fiscal Year 2000,'' and inserting
``October 5, 1999,''.
(7) Section 1405(c)(1) is amended by striking ``the
date of the enactment of the National Defense
Authorization Act for Fiscal Year 1995,'' and inserting
``October 5, 1994,''.
(8) Section 1407(f)(2) is amended by striking ``the
date of the enactment of this subsection--'' and
inserting ``October 30, 2000--''.
(9) Section 1408(d)(6) is amended by striking ``the
date of the enactment of this paragraph'' and inserting
``August 22, 1996,''.
(10) Section 1511(b) is amended by striking ``the
date of the enactment of this chapter.'' and inserting
``February 10, 1996.''.
(11) Section 2461a(b)(1) is amended by striking
``the date of the enactment of this section,'' and
inserting ``October 30, 2000,''.
(12) Section 4021(c)(1) is amended by striking
``the date of the enactment of this section.'' and
inserting ``November 29, 1989.''.
(13) Section 6328(a) is amended by striking ``the
date of the enactment of this section'' and inserting
``February 10, 1996,''.
(14) Section 7439 is amended--
(A) in subsection (a)(2), by striking ``one
year after the date of the enactment of this
section,'' and inserting ``November 18,
1998,'';
(B) in subsection (b)(1), by striking ``the
date of the enactment of this section,'' and
inserting ``November 18, 1997,'';
(C) in subsection (b)(2), by striking ``the
end of the one-year period beginning on the
date of the enactment of this section.'' and
inserting ``November 18, 1998.''; and
(D) in subsection (f)(2), by striking ``the
date of the enactment of this section'' and
inserting ``November 18, 1997,''.
(15) Section 12533 is amended--
(A) in each of subsections (b) and (c)(1),
by striking ``the date of the enactment of this
section.'' and inserting ``November 18,
1997.''; and
(B) in each of subsections (c)(2) and (d),
by striking ``the date of the enactment of this
section'' and inserting ``November 18, 1997,''.
(16) Section 12733(3) is amended--
(A) in subparagraph (B), by striking ``the
date of the enactment of the Floyd D. Spence
National Defense Authorization Act for Fiscal
Year 2001;'' and inserting ``October 30,
2000;''; and
(B) in subparagraph (C), by striking ``the
date of the enactment of the Floyd D. Spence
National Defense Authorization Act for Fiscal
Year 2001'' and inserting ``October 30,
2000,''.
(d) Amendments Relating to Change in Title of McKinney-
Vento Homeless Assistance Act.--The following provisions are
each amended by striking ``Stewart B. McKinney Homeless
Assistance Act'' and inserting ``McKinney-Vento Homeless
Assistance Act'':
(1) Sections 2814(j)(2), 2854a(d)(2), and
2878(d)(4) of title 10, United States Code.
(2) Sections 2905(b)(6)(A) and 2910(11) of the
Defense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note).
(3) Section 204(b)(6)(A) of the Defense
Authorization Amendments and Base Closure and
Realignment Act (Public Law 100-526; 10 U.S.C. 2687
note).
(4) Section 2915(c)(10) of the National Defense
Authorization Act for Fiscal Year 1994 (10 U.S.C. 2687
note).
(5) Section 2(e)(4)(A) of the Base Closure
Community Redevelopment and Homeless Assistance Act of
1994 (Public Law 103-421; 10 U.S.C. 2687 note).
(6) Section 1053(a) of the National Defense
Authorization Act for Fiscal Year 1997 (110 Stat.
2650).
(e) Amendments To Repeal Obsolete Provisions.--Title 10,
United States Code, is further amended as follows:
(1) Section 1144 is amended--
(A) in subsection (a)(3), by striking the
second sentence; and
(B) by striking subsection (e).
(2) Section 1581(b) is amended--
(A) by striking ``(1)'' and all that
follows through ``The Secretary of Defense
shall deposit'' and inserting ``The Secretary
of Defense shall deposit''; and
(B) by striking ``on or after December 5,
1991,''.
(3) Subsection (e) of section 1722 is repealed.
(4) Subsection 1732(a) is amended by striking the
second sentence.
(5) Section 1734 is amended--
(A) in subsection (b)(1)(B), by striking
``on and after October 1, 1991,''; and
(B) in subsection (e)(2), by striking the
last sentence.
(6)(A) Section 1736 is repealed.
(B) The table of sections at the beginning of
subchapter III of chapter 87 is amended by striking the
item relating to section 1736.
(7)(A) Sections 1762 and 1764 are repealed.
(B) The table of sections at the beginning of
subchapter V of chapter 87 is amended by striking the
items relating to sections 1762 and 1764.
(8) Section 2112(a) is amended by striking ``, with
the first class graduating not later than September 21,
1982''.
(9) Section 2218(d)(1) is amended by striking ``for
fiscal years after fiscal year 1993''.
(10)(A) Section 2468 is repealed.
(B) The table of sections at the beginning of
chapter 146 is amended by striking the item relating to
section 2468.
(11) Section 2832 is amended--
(A) by striking ``(a)'' before ``The
Secretary of Defense''; and
(B) by striking subsection (b).
(12) Section 7430(b)(2) is amended--
(A) by striking ``at a price less than''
and all that follows through ``the current
sales price'' and inserting ``at a price less
than the current sales price'';
(B) by striking ``; or'' and inserting a
period; and
(C) by striking subparagraph (B).
(f) Public Law 106-398.--Effective as of October 30, 2000,
and as if included therein as enacted, the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398) is amended as follows:
(1) Section 525(b)(1) (114 Stat. 1654A-109) is
amended by striking ``subsection (c)'' and inserting
``subsections (a) and (b)''.
(2) Section 1152(c)(2) (114 Stat. 1654A-323) is
amended by inserting ``inserting'' after ``and''.
(g) Public Law 106-65.--Effective as of October 5, 1999,
and as if included therein as enacted, the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65) is
amended as follows:
(1) Section 531(b)(2)(A) (113 Stat. 602) is amended
by inserting ``in subsection (a),'' after ``(A)''.
(2) Section 549(a)(2) (113 Stat. 611) is amended by
striking ``such chapter'' and inserting ``chapter 49 of
title 10, United States Code,''.
(3) Section 576(a)(3) (10 U.S.C. 1501 note; 113
Stat. 625) is amended by adding a period at the end.
(4) Section 577(a)(2) (113 Stat. 625) is amended by
striking ``bad conduct'' in the first quoted matter and
inserting ``bad-conduct''.
(5) Section 811(d)(3)(B)(v) (10 U.S.C. 2302 note;
113 Stat. 709) is amended by striking ``Mentor-
Protegee'' and inserting ``Mentor-Protege''.
(6) Section 1052(b)(1) (113 Stat. 764) is amended
by striking `` `The Department'' and inserting ``the
`Department''.
(7) Section 1053(a)(5) (10 U.S.C. 113 note; 113
Stat. 764) is amended by inserting ``and'' before
``Marines''.
(8) Section 1402(f)(2)(A) (22 U.S.C. 2778 note; 113
Stat. 799) is amended by striking ``3201 note'' and
inserting ``6305(4)''.
(9) Section 2902(d) (10 U.S.C. 111 note; 113 Stat.
882) is amended by striking ``section 2871(b)'' and
inserting ``section 2881(b)''.
(h) Public Law 102-484.--The National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102-484) is amended as
follows:
(1) Section 3161(c)(6)(C) (42 U.S.C.
7274h(c)(6)(C)) is amended by striking ``title IX of
the Public Works and Economic Development Act of 1965
(42 U.S.C. 3241 et seq.)'' and inserting ``title II of
the Public Works and Economic Development Act of 1965
(42 U.S.C. 3141 et seq.)''.
(2) Section 4416(b)(1) (10 U.S.C. 12681 note) is
amended by striking ``force reduction period'' and
inserting ``force reduction transition period''.
(3) Section 4461(5) (10 U.S.C. 1143 note) is
amended by adding a period at the end.
(i) Other Laws.--
(1) Section 1083(c) of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 10 U.S.C. 113 note) is amended by striking
``Names'' and inserting ``Name''.
(2) Section 845(d)(1)(B)(ii) of the National
Defense Authorization Act for Fiscal Year 1994 (Public
Law 103-160; 10 U.S.C. 2371 note) is amended by
inserting a closed parenthesis after ``41 U.S.C.
414(3))''.
(3) Section 1123(b) of the National Defense
Authorization Act for Fiscal Years 1990 and 1991
(Public Law 101-189; 103 Stat. 1556) is amended by
striking ``Armed Forces Staff College'' each place it
appears and inserting ``Joint Forces Staff College''.
(4) Section 1412(g)(2)(C)(vii) of the Department of
Defense Authorization Act, 1986 (50 U.S.C.
1521(g)(2)(C)(vii)) is amended by striking ``(c)(3)''
and inserting ``(c)(4)''.
(5) Section 8336 of title 5, United States Code, is
amended--
(A) in subsection (d)(2), by striking
``subsection (o)'' and inserting ``subsection
(p)''; and
(B) by redesignating the second subsection
(o), added by section 1152(a)(2) of the Floyd
D. Spence National Defense Authorization Act
for Fiscal Year 2001 (as enacted by Public Law
106-398; 114 Stat. 1654A-320), as subsection
(p).
(6) Section 9001(3) of title 5, United States Code,
is amended by striking ``and'' at the end of
subparagraph (A) and inserting ``or''.
(7) Section 318(h)(3) of title 37, United States
Code, is amended by striking ``subsection (a)'' and
inserting ``subsection (b)''.
(8) Section 3695(a)(5) of title 38, United States
Code, is amended by striking ``1610'' and inserting
``1611''.
(9) Section 13(b) of the Peace Corps Act (22 U.S.C.
2512(b)) is amended by striking ``, subject to section
5532 of title 5, United States Code''.
(10) Section 127(g)(6) of the Trade Deficit Review
Commission Act (19 U.S.C. 2213 note), as amended by
section 311(b) of the Legislative Branch Appropriations
Act, 2000 (Public Law 106-57; 113 Stat. 428), is
amended--
(A) by striking ``authorities.--'' and all
that follows through ``An individual'' and
inserting ``authorities.--An individual''; and
(B) by striking subparagraph (B).
(11) Section 28 of the Atomic Energy Act of 1954
(42 U.S.C. 2038) is amended in the last sentence by
striking '', subject to'' and all that follows through
the period at the end and inserting a period.
(12) Section 3212 of the National Nuclear Security
Administration Act (50 U.S.C. 2402) is amended by
redesignating the second subsection (e), added by
section 3159(a) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted by
Public Law 106-398; 114 Stat. 1654A-469), as subsection
(f).
(j) Coordination With Other Amendments.--For purposes of
applying amendments made by provisions of this Act other than
provisions of this section, this section shall be treated as
having been enacted immediately before the other provisions of
this Act.

SEC. 1049. TERMINATION OF REFERENDUM REQUIREMENT REGARDING CONTINUATION
OF MILITARY TRAINING ON ISLAND OF VIEQUES, PUERTO
RICO, AND IMPOSITION OF ADDITIONAL CONDITIONS ON
CLOSURE OF TRAINING RANGE.

(a) In General.--Title XV of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398; 114 Stat. 1654A-348) is amended by
striking sections 1503, 1504, and 1505 and inserting the
following new sections:

``SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING RANGE.

``(a) Conditional Authority to Close.--The Secretary of the
Navy may close the Vieques Naval Training Range on the island
of Vieques, Puerto Rico, and discontinue training at that range
only if the Secretary certifies to the President and Congress
that both of the following conditions are satisfied:
``(1) One or more alternative training facilities
exist that, individually or collectively, provide an
equivalent or superior level of training for units of
the Navy and the Marine Corps stationed or deployed in
the eastern United States.
``(2) The alternative facility or facilities are
available and fully capable of supporting such Navy and
Marine Corps training immediately upon cessation of
training on Vieques.
``(b) Consultation Required.--In determining whether the
conditions specified in paragraphs (1) and (2) of subsection
(a) are satisfied, the Secretary of the Navy shall take into
account the written views and recommendations of the Chief of
Naval Operations and the Commandant of the Marine Corps. The
Secretary shall submit these written views and recommendations
to Congress with the certification submitted under subsection
(a).

``SEC. 1504. CLOSURE OF VIEQUES NAVAL TRAINING RANGE AND DISPOSAL OF
CLOSED RANGE.

``(a) Termination of Training and Related Closures.--If the
conditions specified in section 1503(a) are satisfied and the
Secretary of the Navy makes a determination to close the
Vieques Naval Training Range and discontinue live-fire training
at that range the Secretary of the Navy shall--
``(1) terminate all Navy and Marine Corps training
operations on the island of Vieques;
``(2) terminate all Navy and Marine Corps
operations at Naval Station Roosevelt Roads, Puerto
Rico, that are related exclusively to the use of the
training range on the island of Vieques by the Navy and
the Marine Corps; and
``(3) close the Navy installations and facilities
on the island of Vieques, other than properties exempt
from conveyance and transfer under section 1506.
``(b) Transfer to Secretary of the Interior.--Upon
termination of Navy and Marine Corps training operations on the
island of Vieques, the Secretary of the Navy shall transfer,
without reimbursement, to the administrative jurisdiction of
the Secretary of the Interior--
``(1) the Live Impact Area on the island of
Vieques;
``(2) all Department of Defense real properties on
the eastern side of the island that are identified as
conservation zones; and
``(3) all other Department of Defense real
properties on the eastern side of the island.
``(c) Administration by Secretary of the Interior.--
``(1) Retention and administration.--The Secretary
of the Interior shall retain, and may not dispose of
any of, the properties transferred under paragraphs (2)
and (3) of subsection (b) and shall administer such
properties as wildlife refuges under the National
Wildlife Refuge System Administration Act of 1966 (16
U.S.C. 668dd et seq.) pending the enactment of a law
that addresses the disposition of such properties.
``(2) Live impact area.--The Secretary of the
Interior shall assume responsibility for the
administration of the Live Impact Area upon transfer
under paragraph (1) of subsection (b), administer that
area as a wilderness area under the Wilderness Act (16
U.S.C. 1131 et seq.), and deny public access to the
area.
``(d) Live Impact Area Defined.--In this section, the term
`Live Impact Area' means the parcel of real property,
consisting of approximately 900 acres (more or less), on the
island of Vieques that is designated by the Secretary of the
Navy for targeting by live ordnance in the training of forces
of the Navy and Marine Corps.''.
(b) Conforming Amendment.--Section 1507(c) of such Act (114
Stat. 1654A-355) is amended by striking ``the issuance of a
proclamation described in section 1504(a) or''.

Subtitle F--Other Matters

SEC. 1061. ASSISTANCE FOR FIREFIGHTERS.

(a) Authorization of Appropriations.--Subsection (e) of
section 33 of the Federal Fire Prevention and Control Act of
1974 (15 U.S.C. 2229) is amended to read as follows:
``(e) Authorization of Appropriations.--
``(1) In general.--There are authorized to be
appropriated $900,000,000 for each of the fiscal years
2002 through 2004 for the purposes of this section.
``(2) Administrative expenses.--Of the funds
appropriated pursuant to paragraph (1) for a fiscal
year, the Director may use not more than three percent
of the funds to cover salaries and expenses and other
administrative costs incurred by the Director to
operate the office established under subsection (b)(2)
and make grants and provide assistance under this
section.''.
(b) Response to Terrorism or Use of Weapons of Mass
Destruction.--Subsection (b)(3) of such section is amended--
(1) in subparagraph (B), by inserting ``(including
response to a terrorism incident or use of a weapon of
mass destruction)'' after ``response'';
(2) in subparagraph (H), by striking ``and
monitoring'' and inserting ``, monitoring, and response
to a terrorism incident or use of a weapon of mass
destruction''; and
(3) in subparagraph (I), by inserting ``, including
protective equipment to respond to a terrorism incident
or the use of a weapon of mass destruction'' after
``personnel'' the second place it appears.
(c) Technical Amendments.--Subsection (b)(3) of such
section is further amended--
(1) by striking ``the grant funds--'' in the matter
preceding subparagraph (A) and inserting ``the grant
funds for one or more of the following purposes:'';
(2) by capitalizing the initial letter of the first
word of each of subparagraphs (A) through (N);
(3) by striking the semicolon at the end of each of
subparagraphs (A) through (L) and inserting a period;
and
(4) by striking ``; or'' at the end of subparagraph
(M) and inserting a period.

SEC. 1062. EXTENSION OF TIMES FOR COMMISSION ON THE FUTURE OF THE
UNITED STATES AEROSPACE INDUSTRY TO REPORT AND TO
TERMINATE.

(a) Deadline for Report.--Subsection (d)(1) of section 1092
of the Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-398;
114 Stat. 1654A-302) is amended by striking ``March 1, 2002''
and inserting ``one year after the date of the first official
meeting of the Commission''.
(b) Termination of Commission.--Subsection (g) of such
section is amended by striking ``30 days'' and inserting ``60
days''.

SEC. 1063. APPROPRIATIONS TO RADIATION EXPOSURE COMPENSATION TRUST
FUND.

Section 3(e) of the Radiation Exposure Compensation Act (42
U.S.C. 2210 note) is amended to read as follows:
``(e) Appropriation.--
``(1) In general.--There are appropriated to the
Fund, out of any money in the Treasury not otherwise
appropriated, for fiscal year 2002 and each fiscal year
thereafter through fiscal year 2011, such sums as may
be necessary, not to exceed the applicable maximum
amount specified in paragraph (2), to carry out the
purposes of the Fund.
``(2) Limitation.--Appropriation of amounts to the
Fund pursuant to paragraph (1) is subject to the
following maximum amounts:
``(A) For fiscal year 2002, $172,000,000.
``(B) For fiscal year 2003, $143,000,000.
``(C) For fiscal year 2004, $107,000,000.
``(D) For fiscal year 2005, $65,000,000.
``(E) For fiscal year 2006, $47,000,000.
``(F) For fiscal year 2007, $29,000,000.
``(G) For fiscal year 2008, $29,000,000.
``(H) For fiscal year 2009, $23,000,000.
``(I) For fiscal year 2010, $23,000,000.
``(J) For fiscal year 2011, $17,000,000.''.

SEC. 1064. WAIVER OF VEHICLE WEIGHT LIMITS DURING PERIODS OF NATIONAL
EMERGENCY.

Section 127 of title 23, United States Code, is amended by
adding at the end the following new subsection:
``(h) Waiver for a Route in State of Maine During Periods
of National Emergency.--
``(1) In general.--Notwithstanding any other
provision of this section, the Secretary, in
consultation with the Secretary of Defense, may waive
or limit the application of any vehicle weight limit
established under this section with respect to the
portion of Interstate Route 95 in the State of Maine
between Augusta and Bangor for the purpose of making
bulk shipments of jet fuel to the Air National Guard
Base at Bangor International Airport during a period of
national emergency in order to respond to the effects
of the national emergency.
``(2) Applicability.--Emergency limits established
under paragraph (1) shall preempt any inconsistent
State vehicle weight limits.''.

SEC. 1065. REPAIR, RESTORATION, AND PRESERVATION OF LAFAYETTE
ESCADRILLE MEMORIAL, MARNES-LA-COQUETTE, FRANCE.

(a) Authority To Make Grant.--(1) Subject to subsections
(b) and (c), the Secretary of the Air Force may make a grant to
the Lafayette Escadrille Memorial Foundation, Inc., to be used
solely for the purpose of repairing, restoring, and preserving
the structure, plaza, and surrounding grounds of the Lafayette
Escadrille Memorial in Marnes la-Coquette, France.
(2) The amount of the grant may not exceed $2,000,000.
(b) Contribution of Funds by France.--The Secretary of the
Air Force may not make the grant authorized by subsection (a)
until 30 days after the Secretary submits to Congress a report
indicating that the government of France has also contributed
funds toward the repair, restoration, and preservation of the
memorial. The report shall specify the amount of the funds
contributed by the government of France and describe the
purpose for which the funds are to be used.
(c) Conditions on Receipt of Grant.--(1) The grant under
subsection (a) shall be subject to the following conditions:
(A) That the Lafayette Escadrille Memorial
Foundation submit to the Secretary of the Air Force an
annual report, until the grant funds are fully
expended, containing an itemized accounting of
expenditures of grant funds and describing the progress
made to repair, restore, and preserve the memorial.
(B) That the Secretary and the Comptroller General
of the United States, or any of their duly authorized
representatives, be given access for the purpose of
audit and examination to any books, documents, papers,
and records of the Lafayette Escadrille Memorial
Foundation.
(C) That none of the grant funds be used for
remuneration of any entity or individual associated
with fundraising for any project in connection with the
repair, restoration, and preservation of the memorial.
(2) The Secretary shall transmit to Congress a copy of each
report received under paragraph (1)(A).
(d) Report on Architectural and Engineering Costs.--Not
later than one year after the date of the enactment of this
Act, the Secretary of the Air Force shall submit to Congress a
report containing an estimate of the architectural and
engineering costs to be incurred to fully repair, restore, and
preserve the memorial and ensure the long-term structural
integrity of the memorial. The estimate shall be prepared by a
private United States entity, under contract with the
Secretary. Funds for the contract shall also be derived from
the amount specified in subsection (e).
(e) Funds for Grant.--Funds for the grant under subsection
(a) shall be derived only from amounts authorized to be
appropriated under section 301(a)(4) for operation and
maintenance for the Air Force.

TITLE XI--CIVILIAN PERSONNEL MATTERS

Subtitle A--Department of Defense Civilian Personnel

Subtitle B--Civilian Personnel Management Generally

Subtitle C--Intelligence Civilian Personnel

Sec. 1121. Authority to increase maximum number of positions in the
Defense Intelligence Senior Executive Service.

Subtitle D--Matters Relating To Retirement

Subtitle A--Department of Defense Civilian Personnel

SEC. 1101. PERSONNEL PAY AND QUALIFICATIONS AUTHORITY FOR DEPARTMENT OF
DEFENSE PENTAGON RESERVATION CIVILIAN LAW
ENFORCEMENT AND SECURITY FORCE.

Section 2674(b) of title 10, United States Code, is
amended--
(1) by inserting ``(1)'' before the text in the
first paragraph of that subsection;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively; and
(3) by adding at the end the following new
paragraph:
``(2) For positions for which the permanent duty station is
the Pentagon Reservation, the Secretary, in his sole and
exclusive discretion, may without regard to the pay provisions
of title 5, fix the rates of basic pay for such positions
occupied by civilian law enforcement and security personnel
appointed under the authority of this section so as to place
such personnel on a comparable basis with personnel of other
similar Federal law enforcement and security organizations
within the vicinity of the Pentagon Reservation, not to exceed
the basic pay for personnel performing similar duties in the
United States Secret Service Uniformed Division or the United
States Park Police.''.

SEC. 1102. PILOT PROGRAM FOR PAYMENT OF RETRAINING EXPENSES.

(a) Authority To Carry Out Pilot Program.--(1) The
Secretary of Defense may establish a pilot program to
facilitate the reemployment of eligible employees of the
Department of Defense who are involuntarily separated due to a
reduction in force, relocation as a result of a transfer of
function, realignment, or change of duty station. Under the
pilot program, the Secretary may pay retraining incentives to
encourage non-Federal employers to hire and retain such
eligible employees.
(2) Under the pilot program, the Secretary may enter into
an agreement with a non-Federal employer under which the
employer agrees--
(A) to employ an eligible employee for at least 12
months at a salary that is mutually agreeable to the
employer and the eligible employee; and
(B) to certify to the Secretary the amount of costs
incurred by the employer for any necessary training (as
defined by the Secretary) provided to such eligible
employee in connection with the employment.
(3) The Secretary may pay a retraining incentive to the
non-Federal employer upon the employee's completion of 12
months of continuous employment with that employer. The
Secretary shall determine the amount of the incentive, except
that in no event may such amount exceed the lesser of the
amount certified with respect to such eligible employee under
paragraph (2)(B), or $10,000.
(4) In a case in which an eligible employee does not remain
employed by the non-Federal employer for at least 12 months,
the Secretary may pay to the employer a prorated amount of what
would have been the full retraining incentive if the eligible
employee had remained employed for such 12-month period.
(b) Eligible Employees.--For purposes of this section, an
eligible employee is an employee of the Department of Defense,
serving under an appointment without time limitation, who has
been employed by the Department for a continuous period of at
least 12 months and who has been given notice of separation
pursuant to a reduction in force, relocation as a result of a
transfer of function, realignment, or change of duty station,
except that such term does not include--
(1) a reemployed annuitant under the retirement
systems described in subchapter III of chapter 83 of
title 5, United States Code, or chapter 84 of such
title, or another retirement system for employees of
the Federal Government;
(2) an employee who, upon separation from Federal
service, is eligible for an immediate annuity under
subchapter III of chapter 83 of such title, or
subchapter II of chapter 84 of such title; or
(3) an employee who is eligible for disability
retirement under any of the retirement systems referred
to in paragraph (1).
(c) Duration.--No incentive may be paid under the pilot
program for training commenced after September 30, 2005.
(d) Definitions.--In this section:
(1) The term ``non-Federal employer'' means an
employer that is not an Executive agency, as defined in
section 105 of title 5, United States Code, or an
entity in the legislative or judicial branch of the
Federal Government.
(2) The term ``reduction in force'' has the meaning
of that term as used in chapter 35 of such title 5.
(3) The term ``realignment'' has the meaning given
that term in section 2910 of the Defense Base Closure
and Realignment Act of 1990 (title XXIX of Public Law
101-510; 10 U.S.C. 2687 note).

SEC. 1103. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS NOTARIES.

(a) Clarification of Status of Civilian Attorneys Eligible
To Act as Notaries.--Subsection (b) of section 1044a of title
10, United States Code, is amended by striking ``legal
assistance officers'' in paragraph (2) and inserting ``legal
assistance attorneys''.
(b) Other Civilian Employees Designated To Act as Notaries
Abroad.--Such subsection is further amended by adding at the
end the following new paragraph:
``(5) For the performance of notarial acts at
locations outside the United States, all employees of a
military department or the Coast Guard who are
designated by regulations of the Secretary concerned or
by statute to have those powers for exercise outside
the United States.''.

SEC. 1104. AUTHORITY TO APPOINT CERTAIN HEALTH CARE PROFESSIONALS IN
THE EXCEPTED SERVICE.

(a) Authority.--Chapter 81 of title 10, United States Code,
is amended by adding at the end the following new section:

``Sec. 1599c. Appointment in excepted service of certain health care
professionals

``(a) Authority.--The Secretary of Defense may appoint in
the excepted service without regard to the provisions of
subchapter I of chapter 33 of title 5 (except as provided in
section 3328 of such title and in subsection (c) of this
section) an individual who has--
``(1) a recognized degree or certificate from an
accredited institution in a covered health care
profession or occupation; and
``(2) successfully completed a clinical education
program affiliated with the Department of Defense or
the Department of Veterans Affairs.
``(b) Covered Health Care Profession or Occupation.--For
purposes of subsection (a), a covered health care profession or
occupation is any of the following:
``(1) Physician.
``(2) Dentist.
``(3) Podiatrist.
``(4) Optometrist.
``(5) Nurse.
``(6) Physician assistant.
``(7) Expanded-function dental auxiliary.
``(c) Preferences in Hiring.--In using the authority
provided by this section, the Secretary shall apply the
principles of preference for the hiring of veterans and other
individuals established in subchapter I of chapter 33 of title
5.
``(d) Probationary Period.--There shall be an initial
probationary period of two years for appointments made under
the authority of this section.
``(e) Promotions and Advancement.--(1) Promotions of
individuals appointed under the authority of this section shall
be made only after an examination performed in accordance with
regulations prescribed by the Secretary.
``(2) Advancement of such individuals within a pay grade
may be made in increments of the minimum rate of basic pay of
the grade in accordance with regulations prescribed by the
Secretary.
``(f) Review of Records by Board.--The record of each
individual appointed under the authority of this section in the
medical, dental, and nursing services shall be reviewed
periodically by a board, which shall be appointed in accordance
with regulations prescribed by the Secretary. If such board
finds that such individual is not fully qualified and
satisfactory, such individual shall be separated from service.
``(g) Adjustment of Pay.--In accordance with regulations
prescribed by the Secretary, the grade and annual rate of basic
pay of an individual appointed under this section whose level
of assignment is changed from a level of assignment in which
the grade level is based on both the nature of the assignment
and qualifications may be adjusted to the grade and annual rate
of basic pay otherwise appropriate.
``(h) Appointment to Additional Positions.--(1) The
Secretary may use the authority of this subsection (subject to
paragraph (2)) to establish the qualifications for, and appoint
and advance an individual in the Department of Defense as--
``(A) a clinical or counseling psychologist (if
such psychologist holds a diploma as a diplomate in
psychology from an accrediting authority approved by
the Secretary);
``(B) a certified or registered respiratory
therapist;
``(C) a licensed physical therapist;
``(D) a licensed practical or vocational nurse;
``(E) a pharmacist; or
``(F) an occupational therapist.
``(2) Notwithstanding any other provision of this title or
any other law, all matters relating to adverse actions,
disciplinary actions, and grievance procedures involving an
individual appointed to a position described in paragraph (1)
(including such actions and procedures involving an employee in
a probationary status) shall be resolved under the provisions
of title 5 as though such individual had been appointed under
such title.
``(i) Reinstatement.--In determining eligibility for
reinstatement in the civil service of individuals appointed to
positions in the Department of Defense under this section who
at the time of appointment have a civil service status and
whose employment in the Department of Defense is terminated,
the period of service performed in the Department shall be
included in computing the period of service under applicable
civil service regulations.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``1599c. Appointment in excepted service of certain health care
professionals.''.

Subtitle B--Civilian Personnel Management Generally

SEC. 1111. AUTHORITY TO PROVIDE HOSTILE FIRE PAY.

(a) In General.--Subchapter IV of chapter 59 of title 5,
United States Code, is amended by adding at the end the
following new section:

``Sec. 5949. Hostile fire pay

``(a) The head of an Executive agency may pay an employee
hostile fire pay at the rate of $150 for any month in which the
employee was--
``(1) subject to hostile fire or explosion of
hostile mines;
``(2) on duty in an area in which the employee was
in imminent danger of being exposed to hostile fire or
explosion of hostile mines and in which, during the
period on duty in that area, other employees were
subject to hostile fire or explosion of hostile mines;
or
``(3) killed, injured, or wounded by hostile fire,
explosion of a hostile mine, or any other hostile
action.
``(b) An employee covered by subsection (a)(3) who is
hospitalized for the treatment of his or her injury or wound
may be paid hostile fire pay under this section for not more
than three additional months during which the employee is so
hospitalized.
``(c) An employee may be paid hostile fire pay under this
section in addition to other pay and allowances to which
entitled, except that an employee may not be paid hostile fire
pay under this section for periods of time during which the
employee receives payment under section 5925 of this title
because of exposure to political violence or payment under
section 5928 of this title.''.
(b) Technical Amendment.--The table of sections at the
beginning of chapter 59 of such title is amended by inserting
at the end the following new item:

``5949. Hostile fire pay.''.
(c) Effective Date.--This provision is effective as if
enacted into law on September 11, 2001, and may be applied with
respect to any hostile action that took place on or after that
date.

SEC. 1112. PAYMENT OF EXPENSES TO OBTAIN PROFESSIONAL CREDENTIALS.

(a) In General.--Chapter 57 of title 5, United States Code,
is amended by adding at the end the following new section:

``Sec. 5757. Payment of expenses to obtain professional credentials

``(a) An agency may use appropriated funds or funds
otherwise available to the agency to pay for--
``(1) expenses for employees to obtain professional
credentials, including expenses for professional
accreditation, State-imposed and professional licenses,
and professional certification; and
``(2) examinations to obtain such credentials.
``(b) The authority under subsection (a) may not be
exercised on behalf of any employee occupying or seeking to
qualify for appointment to any position that is excepted from
the competitive service because of the confidential, policy-
determining, policy-making, or policy-advocating character of
the position.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``5757. Payment of expenses to obtain professional credentials.''.

SEC. 1113. PARITY IN ESTABLISHMENT OF WAGE SCHEDULES AND RATES FOR
PREVAILING RATE EMPLOYEES.

(a) In General.--Paragraph (2) of section 5343(d) of title
5, United States Code, is amended to read as follows:
``(2) When the lead agency determines that there is a
number of comparable positions in private industry insufficient
to establish the wage schedules and rates, such agency shall
establish the wage schedules and rates on the basis of--
``(A) local private industry rates; and
``(B) rates paid for comparable positions in
private industry in the nearest wage area that such
agency determines is most similar in the nature of its
population, employment, manpower, and industry to the
local wage area for which the wage survey is being
made.''.
(b) Effective Date.--Wage adjustments made pursuant to the
amendment made by this section shall take effect in each
applicable wage area on the first normal effective date of the
applicable wage survey adjustment that occurs after the date of
the enactment of this Act.

SEC. 1114. MODIFICATION OF LIMITATION ON PREMIUM PAY.

(a) In General.--Section 5547 of title 5, United States
Code, is amended to read as follows:

``Sec. 5547. Limitation on premium pay

``(a) An employee may be paid premium pay under sections
5542, 5545(a), (b), and (c), 5545a, and 5546(a) and (b) only to
the extent that the payment does not cause the aggregate of
basic pay and such premium pay for any pay period for such
employee to exceed the greater of--
``(1) the maximum rate of basic pay payable for GS-
15 (including any applicable locality-based
comparability payment under section 5304 or similar
provision of law and any applicable special rate of pay
under section 5305 or similar provision of law); or
``(2) the rate payable for level V of the Executive
Schedule.
``(b)(1) Subject to regulations prescribed by the Office of
Personnel Management, subsection (a) shall not apply to an
employee who is paid premium pay by reason of work in
connection with an emergency (including a wildfire emergency)
that involves a direct threat to life or property, including
work performed in the aftermath of such an emergency.
``(2) Notwithstanding paragraph (1), no employee referred
to in such paragraph may be paid premium pay under the
provisions of law cited in subsection (a) if, or to the extent
that, the aggregate of the basic pay and premium pay under
those provisions for such employee would, in any calendar year,
exceed the greater of--
``(A) the maximum rate of basic pay payable for GS-
15 in effect at the end of such calendar year
(including any applicable locality-based comparability
payment under section 5304 or similar provision of law
and any applicable special rate of pay under section
5305 or similar provision of law); or
``(B) the rate payable for level V of the Executive
Schedule in effect at the end of such calendar year.
``(3) Subject to regulations prescribed by the Office of
Personnel Management, the head of an agency may determine that
subsection (a) shall not apply to an employee who is paid
premium pay to perform work that is critical to the mission of
the agency. Such employees may be paid premium pay under the
provisions of law cited in subsection (a) if, or to the extent
that, the aggregate of the basic pay and premium pay under
those provisions for such employee would not, in any calendar
year, exceed the greater of--
``(A) the maximum rate of basic pay payable for GS-
15 in effect at the end of such calendar year
(including any applicable locality-based comparability
payment under section 5304 or similar provision of law
and any applicable special rate of pay under section
5305 or similar provision of law); or
``(B) the rate payable for level V of the Executive
Schedule in effect at the end of such calendar year.
``(c) The Office of Personnel Management shall prescribe
regulations governing the methods of applying subsection (b)(2)
and (b)(3) to employees who receive premium pay under section
5545(c) or 5545a, or to firefighters covered by section 5545b
who receive overtime pay for hours in their regular tour of
duty, and the method of payment to such employees. Such
regulations may limit the payment of such premium pay on a
biweekly basis.
``(d) This section shall not apply to any employee of the
Federal Aviation Administration or the Department of Defense
who is paid premium pay under section 5546a.''.
(b) Conforming Amendment.--Section 118 of the Treasury and
General Government Appropriations Act, 2001 (as enacted into
law by section 1(3) of Public Law 106-554; 114 Stat. 2763A-134)
is amended by striking ``limitation on the rate of pay payable
during a pay period contained in section 5547(c)(2)'' and
inserting ``restrictions contained in section 5547''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the first day of the first pay
period beginning on or after the date that is 120 days
following the date of enactment of this Act.

SEC. 1115. PARTICIPATION OF PERSONNEL IN TECHNICAL STANDARDS
DEVELOPMENT ACTIVITIES.

Subsection (d) of section 12 of the National Technology
Transfer and Advancement Act of 1995 (Pub. Law 104-113; 15
U.S.C. 272 note) is amended--
(1) by redesignating paragraph (4) as paragraph
(5); and
(2) by inserting after paragraph (3) the following
new paragraph (4):
``(4) Expenses of government personnel.--Section
5946 of title 5, United States Code, shall not apply
with respect to any activity of an employee of a
Federal agency or department that is determined by the
head of that agency or department as being an activity
undertaken in carrying out this subsection.''.

SEC. 1116. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

(a) Definition.--In this section, the term ``agency'' has
the meaning given that term under section 5701 of title 5,
United States Code.
(b) Retention of Travel Promotional Items.--To the extent
provided under subsection (c), a Federal employee, member of
the Foreign Service, member of a uniformed service, any family
member or dependent of such an employee or member, or other
individual who receives a promotional item (including frequent
flyer miles, upgrade, or access to carrier clubs or facilities)
as a result of using travel or transportation services obtained
at Federal Government expense or accepted under section 1353 of
title 31, United States Code, may retain the promotional item
for personal use if the promotional item is obtained under the
same terms as those offered to the general public and at no
additional cost to the Federal Government.
(c) Limitation.--Subsection (b)--
(1) applies only to travel that--
(A) is at the expense of an agency; or
(B) is accepted by an agency under section
1353 of title 31, United States Code; and
(2) does not apply to travel by any officer,
employee, or other official of the Government who is
not in or under any agency.
(d) Regulatory Authority.--Any agency with authority to
prescribe regulations governing the acquisition, acceptance,
use, or disposal of any travel or transportation services
obtained at Government expense or accepted under section 1353
of title 31, United States Code, may prescribe regulations to
carry out subsection (b) with respect to those travel or
transportation services.
(e) Repeal of Superseded Law.--Section 6008 of the Federal
Acquisition Streamlining Act of 1994 (5 U.S.C. 5702 note;
Public Law 103-355) is repealed.
(f) Applicability.--This section shall apply with respect
to promotional items received before, on, or after the date of
enactment of this Act.

SEC. 1117. APPLICABILITY OF CERTAIN LAWS TO CERTAIN INDIVIDUALS
ASSIGNED TO WORK IN THE FEDERAL GOVERNMENT.

Section 3374(c)(2) of title 5, United States Code, is
amended by inserting ``the Ethics in Government Act of 1978,
section 27 of the Office of Federal Procurement Policy Act,''
after ``chapter 73 of this title,''.

Subtitle C--Intelligence Civilian Personnel

SEC. 1121. AUTHORITY TO INCREASE MAXIMUM NUMBER OF POSITIONS IN THE
DEFENSE INTELLIGENCE SENIOR EXECUTIVE SERVICE.

Section 1606(a) of title 10, United States Code, is amended
by striking ``517'' and inserting ``544''.

Subtitle D--Matters Relating To Retirement

SEC. 1131. IMPROVED PORTABILITY OF RETIREMENT COVERAGE FOR EMPLOYEES
MOVING BETWEEN CIVIL SERVICE EMPLOYMENT AND
EMPLOYMENT BY NONAPPROPRIATED FUND
INSTRUMENTALITIES.

(a) Civil Service Retirement System.--Section 8347(q) of
title 5, United States Code, is amended--
(1) in paragraph (1)--
(A) by inserting ``and'' at the end of
subparagraph (A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B); and
(2) in paragraph (2)(B)--
(A) by striking ``vested''; and
(B) by striking ``, as the term'' and all
that follows through ``such system''.
(b) Federal Employees' Retirement System.--Section 8461(n)
of such title is amended--
(1) in paragraph (1)--
(A) by inserting ``and'' at the end of
subparagraph (A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B); and
(2) in paragraph (2)(B)--
(A) by striking ``vested''; and
(B) by striking ``, as the term'' and all
that follows through ``such system''.

SEC. 1132. FEDERAL EMPLOYMENT RETIREMENT CREDIT FOR NONAPPROPRIATED
FUND INSTRUMENTALITY SERVICE.

(a) Civil Service Retirement System.--(1) Section 8332(b)
of title 5, United States Code, is amended--
(A) by striking ``and'' at the end of paragraph
(15);
(B) by striking the period at the end of paragraph
(16) and inserting ``; and'';
(C) by inserting after paragraph (16) the following
new paragraph:
``(17) service performed by any individual as an
employee paid from nonappropriated funds of an
instrumentality of the Department of Defense or the
Coast Guard described in section 2105(c) that is not
covered by paragraph (16) and that is not otherwise
creditable, if the individual elects (in accordance
with regulations prescribed by the Office) to have such
service credited under this paragraph.'';
(D) in the last sentence, by inserting ``or (17)''
after ``service of the type described in paragraph
(16)''; and
(E) by inserting after the last sentence the
following: ``Service credited under paragraph (17) may
not also be credited under any other retirement system
provided for employees paid from nonappropriated funds
of a nonappropriated fund instrumentality.''.
(2) Section 8334 of such title is amended by adding at the
end the following new subsection:
``(n) Notwithstanding subsection (c), no deposit may be
made with respect to service credited under section
8332(b)(17).''.
(3) Section 8339 of such title is amended by adding at the
end the following new subsection:
``(u) The annuity of an employee retiring under this
subchapter with service credited under section 8332(b)(17)
shall be reduced by the amount necessary to ensure that the
present value of the annuity payable to the employee is
actuarially equivalent to the present value of the annuity that
would be payable to the employee under this subchapter if it
were computed--
``(1) on the basis of service that does not include
service credited under section 8332(b)(17); and
``(2) assuming the employee separated from service
on the actual date of the separation of the employee.
``The amount of the reduction shall be computed under
regulations prescribed by the Office of Personnel Management
for the administration of this subsection.''.
(b) Federal Employees' Retirement System.--(1) Section 8411
of such title is amended--
(A) in subsection (b)--
(i) by striking ``and'' at the end of
paragraph (4);
(ii) by striking the period at the end of
paragraph (5) and inserting ``; and''; and
(iii) by inserting after paragraph (5) the
following new paragraph:
``(6) service performed by any individual as an
employee paid from nonappropriated funds of an
instrumentality of the Department of Defense or the
Coast Guard described in section 2105(c) that is not
otherwise creditable, if the individual elects (in
accordance with regulations prescribed by the Office)
to have such service credited under this paragraph.'';
and
(B) by adding at the end the following new
subsection:
``(k)(1) The Office of Personnel Management shall accept,
for the purposes of this chapter, the certification of the head
of a nonappropriated fund instrumentality of the United States
concerning service of the type described in subsection (b)(6)
that was performed for such nonappropriated fund
instrumentality.
``(2) Service credited under subsection (b)(6) may not also
be credited under any other retirement system provided for
employees paid from nonappropriated funds of a nonappropriated
fund instrumentality.''.
(2)(A) Section 8422 of such title is amended by adding at
the end the following new subsection:
``(h) No deposit may be made with respect to service
credited under section 8411(b)(6).''.
(B) The heading for such section is amended to read as
follows:

``Sec. 8422. Deductions from pay; contributions for other service''.

(C) The item relating to such section in the table of
contents at the beginning of chapter 84 of title 5, United
States Code, is amended to read as follows:

``8422. Deductions from pay; contributions for other service.''.

(3) Section 8415 of such title is amended by adding at the
end the following new subsection:
``(j) The annuity of an employee retiring under this
chapter with service credited under section 8411(b)(6) shall be
reduced by the amount necessary to ensure that the present
value of the annuity payable to the employee under this
subchapter is actuarially equivalent to the present value of
the annuity that would be payable to the employee under this
subchapter if it were computed--
``(1) on the basis of service that does not include
service credited under section 8411(b)(6); and
``(2) assuming the employee separated from service
on the actual date of the separation of the employee.
``The amount of the reduction shall be computed under
regulations prescribed by the Office of Personnel Management
for the administration of this subsection.''.
(c) Applicability.--The amendments made by this section
shall apply only to separations from service as an employee of
the United States on or after the date of the enactment of this
Act.

SEC. 1133. MODIFICATION OF LIMITATIONS ON EXERCISE OF VOLUNTARY
SEPARATION INCENTIVE PAY AUTHORITY AND VOLUNTARY
EARLY RETIREMENT AUTHORITY.

(a) In General.--Section 1153(b) of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat. 1654A-323) is
amended--
(1) in paragraph (1)--
(A) by striking ``(1) Subject to paragraph
(2), the'' and inserting ``The'';
(B) by striking ``in each of fiscal years
2002 and 2003, not more than 4000 employees of
the Department of Defense are'' and inserting
``in fiscal year 2002 not more than 2000
employees of the Department of Defense are, and
in fiscal year 2003 not more than 6000
employees of the Department of Defense are'';
and
(C) by redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively;
and
(2) by striking paragraph (2).
(b) Construction.--The amendments made by subsection (a)
may be superceded by another provision of law that takes effect
after the date of the enactment of this Act, and before October
1, 2003, establishing a uniform system of providing voluntary
separation incentives (including a system for requiring
approval of plans by the Office of Management and Budget) for
employees of the Federal Government.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

Subtitle A--Matters Related to Arms Control and Monitoring

Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

Subtitle C--Reports

Subtitle A--Matters Related to Arms Control and Monitoring

SEC. 1201. CLARIFICATION OF AUTHORITY TO FURNISH NUCLEAR TEST
MONITORING EQUIPMENT TO FOREIGN GOVERNMENTS.

(a) Redesignation of Existing Section.--(1) The second
section 2555 of title 10, United States Code, added by section
1203(a) of the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001 (as enacted into law by Public Law
106-398; 114 Stat. 1654A-324), is redesignated as section 2565.
(2) The item relating to that section in the table of
sections at the beginning of chapter 152 of that title is
amended to read as follows:

``2565. Nuclear test monitoring equipment: furnishing to foreign
governments.''.
(b) Clarification of Authority.--Section 2565 of that
title, as so redesignated by subsection (a), is amended--
(1) in subsection (a)--
(A) by striking ``Convey or'' in the
subsection heading and inserting ``Transfer
Title to or Otherwise'';
(B) in paragraph (1)--
(i) by striking ``convey'' and
inserting ``transfer title''; and
(ii) by striking ``and'' at the
end;
(C) by striking the period at the end of
paragraph (2) and inserting ``; and''; and
(D) by adding at the end the following new
paragraph:
``(3) inspect, test, maintain, repair, or replace
any such equipment.''; and
(2) in subsection (b)--
(A) by striking ``conveyed or otherwise
provided'' and inserting ``provided to a
foreign government'';
(B) by inserting ``and'' at the end of
paragraph (1);
(C) by striking ``; and'' at the end of
paragraph (2) and inserting a period; and
(D) by striking paragraph (3).

SEC. 1202. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN
MOSCOW.

(a) Limitation.--Not more than 50 percent of the funds made
available to the Department of Defense for fiscal year 2002 for
activities associated with the Joint Data Exchange Center in
Moscow, Russia, may be obligated for any such activity until--
(1) the United States and the Russian Federation
enter into a cost-sharing agreement as described in
subsection (d) of section 1231 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year
2001, as enacted into law by Public Law 106-398 (114
Stat. 1654A-329);
(2) the United States and the Russian Federation
enter into an agreement or agreements exempting the
United States and any United States person from Russian
taxes, and from liability under Russian laws, with
respect to activities associated with the Joint Data
Exchange Center;
(3) the Secretary of Defense submits to the
Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of
Representatives a copy of each agreement referred to in
paragraphs (1) and (2); and
(4) a period of 30 days has expired after the date
of the final submission under paragraph (3).
(b) Joint Data Exchange Center.--For purposes of this
section, the term ``Joint Data Exchange Center'' means the
United States-Russian Federation joint center for the exchange
of data to provide early warning of launches of ballistic
missiles and for notification of such launches that is provided
for in a joint United States-Russian Federation memorandum of
agreement signed in Moscow in June 2000.

SEC. 1203. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND
MONITOR IRAQI WEAPONS ACTIVITIES.

(a) Limitation on Amount of Assistance in Fiscal Year
2002--The total amount of the assistance for fiscal year 2002
that is provided by the Secretary of Defense under section 1505
of the Weapons of Mass Destruction Control Act of 1992 (22
U.S.C. 5859a) as activities of the Department of Defense in
support of activities under that Act may not exceed
$15,000,000.
(b) Extension of Authority To Provide Assistance.--
Subsection (f) of section 1505 of the Weapons of Mass
Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended by
striking ``2001'' and inserting ``2002''.

SEC. 1204. AUTHORITY FOR EMPLOYEES OF FEDERAL GOVERNMENT CONTRACTORS TO
ACCOMPANY CHEMICAL WEAPONS INSPECTION TEAMS AT
GOVERNMENT-OWNED FACILITIES.

(a) Authority.--Section 303(b)(2) of the Chemical Weapons
Convention Implementation Act of 1998 (22 U.S.C. 6723(b)(2)) is
amended by inserting after ``designation of employees of the
Federal Government'' the following: ``(and, in the case of an
inspection of a United States Government facility, the
designation of contractor personnel who shall be led by an
employee of the Federal Government)''.
(b) Credentials.--Section 304(c) of such Act (22 U.S.C.
6724(c)) is amended by striking ``Federal government'' and
inserting ``Federal Government (and, in the case of an
inspection of a United States Government facility, any
accompanying contractor personnel)''.

SEC. 1205. PLAN FOR SECURING NUCLEAR WEAPONS, MATERIAL, AND EXPERTISE
OF THE STATES OF THE FORMER SOVIET UNION.

(a) Plan Required.--Not later than June 15, 2002, the
President shall submit to Congress a plan, that has been
developed in coordination with all relevant Federal agencies--
(1) for cooperating with Russia on disposing, as
soon as practicable, of nuclear weapons and weapons-
usable nuclear material in Russia that Russia does not
retain in its nuclear arsenals;
(2) for assisting Russia in downsizing its nuclear
weapons research and production complex;
(3) for cooperating with the other states of the
former Soviet Union on disposing, as soon as
practicable, of all nuclear weapons and weapons-usable
nuclear material in such states; and
(4) for preventing the outflow from the states of
the former Soviet Union of scientific expertise that
could be used for developing nuclear weapons, other
weapons of mass destruction, and delivery systems for
such weapons.
(b) Content of Plan.--The plan required by subsection (a)
shall include the following:
(1) Specific goals and measurable objectives for
programs that are designed to carry out the objectives
described in subsection (a).
(2) Criteria for success for such programs, and a
strategy for eventual termination of United States
contributions to such programs and assumption of the
ongoing support of those programs by others.
(3) A description of any administrative and
organizational changes necessary to improve the
coordination and effectiveness of such programs. In
particular, the plan shall include consideration of the
creation of an interagency committee that would have
primary responsibilities within the executive branch
for--
(A) monitoring United States
nonproliferation efforts in the states of the
former Soviet Union;
(B) coordinating the implementation of
United States policy with respect to such
efforts; and
(C) recommending to the President
integrated policies, budget options, and
private sector and international contributions
for such programs.
(4) An estimate of the cost of carrying out such
programs.
(c) Consultation.--In developing the plan required by
subsection (a), the President--
(1) is encouraged to consult with the relevant
states of the former Soviet Union regarding the
practicality of various options; and
(2) shall consult with the majority and minority
leadership of the appropriate committees of Congress.

Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

SEC. 1211. ACQUISITION OF LOGISTICAL SUPPORT FOR SECURITY FORCES.

Section 5 of the Multinational Force and Observers
Participation Resolution (22 U.S.C. 3424) is amended by adding
at the end the following new subsection:
``(d)(1) The United States may use contractors to provide
logistical support to the Multinational Force and Observers
under this section in lieu of providing such support through a
logistical support unit comprised of members of the United
States Armed Forces.
``(2) Notwithstanding subsections (a) and (b) and section
7(b), support by a contractor under this subsection may be
provided without reimbursement whenever the President
determines that such action enhances or supports the national
security interests of the United States.''.

SEC. 1212. EXTENSION OF AUTHORITY FOR INTERNATIONAL COOPERATIVE
RESEARCH AND DEVELOPMENT PROJECTS.

(a) Eligibility of Friendly Foreign Countries.--Section
2350a of title 10, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``(a)
Authority To Engage in Cooperative R&D
Projects.--';
(B) by striking ``major allies of the
United States or NATO organizations'' and
inserting ``countries or organizations referred
to in paragraph (2)''; and
(C) by adding at the end the following new
paragraph:
``(2) The countries and organizations with which the
Secretary may enter into a memorandum of agreement (or other
formal agreement) under paragraph (1) are as follows:
``(A) The North Atlantic Treaty Organization.
``(B) A NATO organization.
``(C) A member nation of the North Atlantic Treaty
Organization.
``(D) A major non-NATO ally.
``(E) Any other friendly foreign country.'';
(2) in subsection (b)(1)--
(A) by striking ``its major non-NATO
allies'' and inserting ``a country or
organization referred to in subsection
(a)(2)''; and
(B) by striking ``(NATO)'';
(3) in subsection (d)--
(A) in paragraph (1), by striking ``the
major allies of the United States'' and
inserting ``countries and organizations
referred to in subsection (a)(2)''; and
(B) in paragraph (2)--
(i) by striking ``major ally of the
United States'' and inserting ``country
or organization referred to in
subsection (a)(2)''; and
(ii) by striking ``that ally's
contribution'' and inserting ``the
contribution of that country or
organization'';
(4) in subsection (e)(2)--
(A) in subparagraph (A), by striking ``one
or more of the major allies of the United
States'' and inserting ``any country or
organization referred to in subsection
(a)(2)'';
(B) in subparagraph (B), by striking
``major allies of the United States or NATO
organizations'' and inserting ``countries and
organizations referred to in subsection
(a)(2)'';
(C) in subparagraph (C), by striking
``major allies of the United States'' and
inserting ``countries and organizations
referred to in subsection (a)(2)''; and
(D) in subparagraph (D), by striking
``major allies of the United States'' and
inserting ``countries and organizations
referred to in subsection (a)(2)'';
(5) paragraphs (1)(A) and (4)(A) of subsection (g),
by striking ``major allies of the United States and
other friendly foreign countries'' and inserting
``countries referred to in subsection (a)(2)'';
(6) in subsection (h), by striking ``major allies
of the United States'' and inserting ``member nations
of the North Atlantic Treaty Organization, major non-
NATO allies, and other friendly foreign countries'';
and
(7) in subsection (i)--
(A) in paragraph (1), by striking ``major
allies of the United States or NATO
organizations'' and inserting ``countries and
organizations referred to in subsection
(a)(2)'';
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3) and (4)
as paragraphs (2) and (3), respectively.
(b) Notice-and-Wait Requirement.--Subsection (a) of such
section is further amended by adding at the end the following
new paragraph:
``(3) If such a memorandum of understanding (or other
formal agreement) is with a country referred to in subparagraph
(E) of paragraph (2), such memorandum (or agreement) may go
into effect only after the Secretary submits to the Committees
on Armed Services and on Foreign Relations of the Senate and to
the Committees on Armed Services and on International Relations
of the House of Representatives a report with respect to the
proposed memorandum (or agreement) and a period of 30 days has
passed after the report has been submitted.''.
(c) Delegation of Authority To Determine Eligibility of
Projects.--Subsection (b)(2) of such section is amended by
striking ``to the Deputy Secretary of Defense'' and all that
follows through the period at the end and inserting ``to the
Deputy Secretary of Defense and to one other official of the
Department of Defense.''.
(d) Revision of Requirement for Annual Report on Eligible
Countries.--Subsection (f)(2) of such section is amended to
read as follows:
``(2) Not later than January 1 of each year, the Secretary
of Defense shall submit to the Committees on Armed Services and
on Foreign Relations of the Senate and to the Committees on
Armed Services and on International Relations of the House of
Representatives a report specifying--
``(A) the countries that are eligible to
participate in a cooperative project agreement under
this section; and
``(B) the criteria used to determine the
eligibility of such countries.''.
(e) Conforming Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 2350a. Cooperative research and development agreements: NATO
organizations; allied and friendly foreign
countries''.

(2) The item relating to such section in the table of
sections at the beginning of subchapter II of chapter 138 of
title 10, United States Code, is amended to read as follows:

``2350a. Cooperative research and development agreements: NATO
organizations; allied and friendly foreign countries.''.

SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN COUNTRIES AND
INTERNATIONAL ORGANIZATIONS FOR RECIPROCAL USE OF
TEST FACILITIES.

(a) Authority.--Subchapter II of chapter 138 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 2350l. Cooperative agreements for reciprocal use of test
facilities: foreign countries and international
organizations

``(a) Authority.--The Secretary of Defense, with the
concurrence of the Secretary of State, may enter into a
memorandum of understanding (or other formal agreement) with a
foreign country or international organization to provide for
the testing, on a reciprocal basis, of defense equipment (1) by
the United States using test facilities of that country or
organization, and (2) by that country or organization using
test facilities of the United States.
``(b) Payment of Costs.--A memorandum or other agreement
under subsection (a) shall provide that, when a party to the
agreement uses a test facility of another party to the
agreement, the party using the test facility is charged by the
party providing the test facility in accordance with the
following principles:
``(1) The user party shall be charged the amount
equal to the direct costs incurred by the provider
party in furnishing test and evaluation services by the
providing party's officers, employees, or governmental
agencies.
``(2) The user party may also be charged indirect
costs relating to the use of the test facility, but
only to the extent specified in the memorandum or other
agreement.
``(c) Determination of Indirect Costs; Delegation of
Authority.--(1) The Secretary of Defense shall determine the
appropriateness of the amount of indirect costs charged by the
United States pursuant to subsection (b)(2).
(2) The Secretary may delegate the authority under
paragraph (1) only to the Deputy Secretary of Defense and to
one other official of the Department of Defense.
``(d) Retention of Funds Collected by the United States.--
Amounts collected by the United States from a party using a
test facility of the United States pursuant to a memorandum or
other agreement under this section shall be credited to the
appropriation accounts from which the costs incurred by the
United States in providing such test facility were paid.
``(e) Definitions.--In this section:
``(1) The term `direct cost', with respect to the
use of a test facility pursuant to a memorandum or
other agreement under subsection (a)--
``(A) means any item of cost that is easily
and readily identified to a specific unit of
work or output within the test facility where
the use occurred, that would not have been
incurred if such use had not occurred; and
``(B) may include costs of labor,
materials, facilities, utilities, equipment,
supplies, and any other resources of the test
facility that are consumed or damaged in
connection with--
``(i) the use; or
``(ii) the maintenance of the test
facility for purposes of the use.
``(2) The term `indirect cost', with respect to the
use of a test facility pursuant to a memorandum or
other agreement under subsection (a)--
``(A) means any item of cost that is not
easily and readily identified to a specific
unit of work or output within the test facility
where the use occurred; and
``(B) may include general and
administrative expenses for such activities as
supporting base operations, manufacturing,
supervision, procurement of office supplies,
and utilities that are accumulated costs
allocated among several users.
``(3) The term `test facility' means a range or
other facility at which testing of defense equipment
may be carried out.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such subchapter is amended by adding at the end
the following new item:

``2350l. Cooperative agreements for reciprocal use of test facilities:
foreign countries and international organizations.''.

SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE BURDENSHARING.

It is the sense of Congress that--
(1) the efforts of the President to increase
defense burdendsharing by allied and friendly nations
deserve strong support; and
(2) host nation support agreements with those
nations in which United States military personnel are
assigned to permanent duty ashore should be negotiated
consistent with section 1221(a)(1) of the National
Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85; 50 U.S.C. 1541(a)(1)), which sets forth a
goal of obtaining from any such host nation financial
contributions that amount to 75 percent of the
nonpersonnel costs incurred by the United States
Government for stationing United States military
personnel in that nation.

Subtitle C--Reports

SEC. 1221. REPORT ON SIGNIFICANT SALES AND TRANSFERS OF MILITARY
HARDWARE, EXPERTISE, AND TECHNOLOGY TO THE PEOPLE'S
REPUBLIC OF CHINA.

Section 1202 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 781; 10 U.S.C.
113 note) is amended by adding at the end the following new
subsection:
``(d) Report on Significant Sales and Transfers to China.--
(1) The report to be submitted under this section not later
than March 1, 2002, shall include in a separate section a
report describing any significant sale or transfer of military
hardware, expertise, and technology to the People's Republic of
China. The report shall set forth the history of such sales and
transfers since 1995, forecast possible future sales and
transfers, and address the implications of those sales and
transfers for the security of the United States and its friends
and allies in Asia.
``(2) The report shall include analysis and forecasts of
the following matters related to military cooperation between
selling states and the People's Republic of China:
``(A) The extent in each selling state of
government knowledge, cooperation, or condoning of
sales or transfers of military hardware, expertise, or
technology to the People's Republic of China.
``(B) An itemization of significant sales and
transfers of military hardware, expertise, or
technology from each selling state to the People's
Republic of China that have taken place since 1995,
with a particular focus on command, control,
communications, and intelligence systems.
``(C) Significant assistance by any selling state
to key research and development programs of China,
including programs for development of weapons of mass
destruction and delivery vehicles for such weapons,
programs for development of advanced conventional
weapons, and programs for development of unconventional
weapons.
``(D) The extent to which arms sales by any selling
state to the People's Republic of China are a source of
funds for military research and development or
procurement programs in the selling state.
``(3) The report under paragraph (1) shall include, with
respect to each area of analysis and forecasts specified in
paragraph (2)--
``(A) an assessment of the military effects of such
sales or transfers to entities in the People's Republic
of China;
``(B) an assessment of the ability of the People's
Liberation Army to assimilate such sales or transfers,
mass produce new equipment, or develop doctrine for
use; and
``(C) the potential threat of developments related
to such effects on the security interests of the United
States and its friends and allies in Asia.''.

SEC. 1222. REPEAL OF REQUIREMENT FOR REPORTING TO CONGRESS ON MILITARY
DEPLOYMENTS TO HAITI.

Section 1232(b) of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 788; 50
U.S.C. 1541 note) is repealed.

SEC. 1223. REPORT BY COMPTROLLER GENERAL ON PROVISION OF DEFENSE
ARTICLES, SERVICES, AND MILITARY EDUCATION AND
TRAINING TO FOREIGN COUNTRIES AND INTERNATIONAL
ORGANIZATIONS.

(a) Study.--The Comptroller General shall conduct a study
of the following:
(1) The benefits derived by each foreign country or
international organization from the receipt of defense
articles, defense services, or military education and
training provided after December 31, 1989, pursuant to
the drawdown of such articles, services, or education
and training from the stocks of the Department of
Defense under section 506, 516, or 552 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2318, 2321j, or
2348a) or any other provision of law.
(2) Any benefits derived by the United States from
the provision of defense articles, defense services,
and military education and training described in
paragraph (1).
(3) The effect on the readiness of the Armed Forces
as a result of the provision by the United States of
defense articles, defense services, and military
education and training described in paragraph (1).
(4) The cost to the Department of Defense with
respect to the provision of defense articles, defense
services, and military education and training described
in paragraph (1).
(b) Reports.--(1) Not later than April 15, 2002, the
Comptroller General shall submit to Congress an interim report
containing the results to that date of the study conducted
under subsection (a).
(2) Not later than August 1, 2002, the Comptroller General
shall submit to Congress a final report containing the results
of the study conducted under subsection (a).

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
SOVIET UNION

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
FUNDS.

(a) Specification of CTR Programs.--For purposes of section
301 and other provisions of this Act, Cooperative Threat
Reduction programs are the programs specified in section
1501(b) of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362
note).
(b) Fiscal Year 2002 Cooperative Threat Reduction Funds
Defined.--As used in this title, the term ``fiscal year 2002
Cooperative Threat Reduction funds'' means the funds
appropriated pursuant to the authorization of appropriations in
section 301 for Cooperative Threat Reduction programs.
(c) Availability of Funds.--Funds appropriated pursuant to
the authorization of appropriations in section 301 for
Cooperative Threat Reduction programs shall be available for
obligation for three fiscal years.

SEC. 1302. FUNDING ALLOCATIONS.

(a) Funding for Specific Purposes.--Of the $403,000,000
authorized to be appropriated to the Department of Defense for
fiscal year 2002 in section 301(23) for Cooperative Threat
Reduction programs, not more than the following amounts may be
obligated for the purposes specified:
(1) For strategic offensive arms elimination in
Russia, $133,405,000.
(2) For strategic nuclear arms elimination in
Ukraine, $51,500,000.
(3) For nuclear weapons transportation security in
Russia, $9,500,000.
(4) For nuclear weapons storage security in Russia,
$56,000,000.
(5) For biological weapons proliferation prevention
activities in the former Soviet Union, $17,000,000.
(6) For activities designated as Other Assessments/
Administrative Support, $13,221,000.
(7) For defense and military contacts, $18,650,000.
(8) For chemical weapons destruction in Russia,
$50,000,000.
(9) For weapons of mass destruction infrastructure
elimination activities in Kazakhstan, $6,000,000.
(10) For weapons of mass destruction infrastructure
elimination activities in Ukraine, $6,024,000.
(11) For activities to assist Russia in the
elimination of plutonium production reactors,
$41,700,000.
(b) Report on Obligation or Expenditure of Funds for Other
Purposes.--No fiscal year 2002 Cooperative Threat Reduction
funds may be obligated or expended for a purpose other than a
purpose listed in paragraphs (1) through (11) of subsection (a)
until 30 days after the date that the Secretary of Defense
submits to Congress a report on the purpose for which the funds
will be obligated or expended and the amount of funds to be
obligated or expended. Nothing in the preceding sentence shall
be construed as authorizing the obligation or expenditure of
fiscal year 2002 Cooperative Threat Reduction funds for a
purpose for which the obligation or expenditure of such funds
is specifically prohibited under this title or any other
provision of law.
(c) Limited Authority To Vary Individual Amounts.--(1)
Subject to paragraphs (2) and (3), in any case in which the
Secretary of Defense determines that it is necessary to do so
in the national interest, the Secretary may obligate amounts
appropriated for fiscal year 2002 for a purpose listed in any
of the paragraphs in subsection (a) in excess of the amount
specifically authorized for such purpose.
(2) An obligation of funds for a purpose stated in any of
the paragraphs in subsection (a) in excess of the specific
amount authorized for such purpose may be made using the
authority provided in paragraph (1) only after--
(A) the Secretary submits to Congress notification
of the intent to do so together with a complete
discussion of the justification for doing so; and
(B) 15 days have elapsed following the date of the
notification.
(3) The Secretary may not, under the authority provided in
paragraph (1), obligate amounts for the purposes stated in
paragraph (6), (7), or (11) of subsection (a) in excess of 115
percent of the amount specifically authorized for such
purposes.
(d) Modification of Authority To Vary Individual Amounts of
FY 2001 Funds.--Section 1302(c)(3) of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114 Stat. 1654A-340) is
amended by striking ``(4),''.

SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF REPORTS.

Not more than 50 percent of fiscal year 2002 Cooperative
Threat Reduction funds may be obligated or expended until 30
days after the date of the submission of--
(1) the report required to be submitted in fiscal
year 2001 under section 1308(a) of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001
(as enacted into law by Public Law 106-398; 114 Stat.
1654A-341); and
(2) the multiyear plan required to be submitted for
fiscal year 2001 under section 1308(h) of such Act.

SEC. 1304. REQUIREMENT TO CONSIDER USE OF REVENUE GENERATED BY
ACTIVITIES CARRIED OUT UNDER COOPERATIVE THREAT
REDUCTION PROGRAMS.

The Secretary of Defense shall consider the use of revenue
generated by activities carried out under Cooperative Threat
Reduction programs in negotiating and executing contracts with
Russia to carry out such programs.

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE
MATERIAL STORAGE FACILITY.

(a) Prohibition.--No fiscal year 2002 Cooperative Threat
Reduction funds and no funds authorized to be appropriated for
Cooperative Threat Reduction programs for any prior fiscal year
may be used for the construction of a second wing for a storage
facility for Russian fissile material.
(b) Conforming Amendment.--Section 1304 of the Floyd D.
Spence National Defense Authorization Act for Fiscal Year 2001
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
341) is amended to read as follows:

``SEC. 1304. LIMITATION ON USE OF FUNDS FOR FISSILE MATERIAL STORAGE
FACILITY.

``Out of funds authorized to be appropriated for
Cooperative Threat Reduction programs for fiscal year 2001 or
any other fiscal year, not more than $412,600,000 may be used
for planning, design, or construction of the first wing for the
storage facility for Russian fissile material referred to in
section 1302(a)(5) other than planning, design, or construction
to improve security at such first wing.''.

SEC. 1306. PROHIBITION AGAINST USE OF FUNDS FOR CERTAIN CONSTRUCTION
ACTIVITIES.

No fiscal year 2002 Cooperative Threat Reduction funds may
be used for construction activities carried out under Russia's
program to eliminate the production of weapons grade plutonium.

SEC. 1307. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE
THREAT REDUCTION PROGRAMS.

Section 1308(c)(4) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-342) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``audits'' and all that
follows through ``conducted'' and inserting
``means (including program management, audits,
examinations, and other means) used''; and
(B) by striking ``and that such assistance
is being used for its intended purpose'' and
inserting ``, that such assistance is being
used for its intended purpose, and that such
assistance is being used efficiently and
effectively'';
(2) in subparagraph (C), by inserting ``and an
assessment of whether the assistance being provided is
being used effectively and efficiently'' before the
semicolon; and
(3) in subparagraph (D), by striking ``audits,
examinations, and other''.

SEC. 1308. CHEMICAL WEAPONS DESTRUCTION.

Section 1305 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C.
5952 note) is amended by inserting before the period at the end
the following: ``until the Secretary of Defense submits to
Congress a certification that there has been--
``(1) information provided by Russia, that the
United States assesses to be full and accurate,
regarding the size of the chemical weapons stockpile of
Russia;
``(2) a demonstrated annual commitment by Russia to
allocate at least $25,000,000 to chemical weapons
elimination;
``(3) development by Russia of a practical plan for
destroying its stockpile of nerve agents;
``(4) enactment of a law by Russia that provides
for the elimination of all nerve agents at a single
site;
``(5) an agreement by Russia to destroy or convert
its chemical weapons production facilities at Volgograd
and Novocheboksark; and
``(6) a demonstrated commitment from the
international community to fund and build
infrastructure needed to support and operate the
facility.''.

SEC. 1309. ADDITIONAL MATTER IN ANNUAL REPORT ON ACTIVITIES AND
ASSISTANCE UNDER COOPERATIVE THREAT REDUCTION
PROGRAMS.

Section 1308(c) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-341) (as amended by section
1308) is further amended by adding at the end of the following
new paragraph:
``(6) A description of the amount of the financial
commitment from the international community, and from
Russia, for the chemical weapons destruction facility
located at Shchuch'ye, Russia, for the fiscal year
beginning in the year in which the report is
submitted.''.

TITLE XIV--ARMED FORCES RETIREMENT HOME

SEC. 1401. AMENDMENT OF ARMED FORCES RETIREMENT HOME ACT OF 1991.

Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or a repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of the Armed Forces Retirement Home Act of 1991
(title XV of Public Law 101-510; 24 U.S.C. 401 et seq.).

SEC. 1402. DEFINITIONS.

Section 1502 (24 U.S.C. 401) is amended--
(1) by striking paragraphs (1), (2), (3), (4), and
(5), and inserting the following new paragraphs:
``(1) The term `Retirement Home' includes the
institutions established under section 1511, as
follows:
``(A) The Armed Forces Retirement Home--
Washington.
``(B) The Armed Forces Retirement Home--
Gulfport.
``(2) The term `Local Board' means a Local Board of
Trustees established under section 1516.
``(3) The terms `Armed Forces Retirement Home Trust
Fund' and `Fund' mean the Armed Forces Retirement Home
Trust Fund established under section 1519(a).'';
(2) by redesignating paragraphs (6), (7), and (8)
as paragraphs (4), (5), and (6), respectively; and
(3) in paragraph (5), as so redesignated--
(A) in subparagraph (C), by striking ``,
Manpower and Personnel'' and inserting ``for
Personnel''; and
(B) in subparagraph (D), by striking ``with
responsibility for personnel matters'' and
inserting ``for Manpower and Reserve Affairs''.

SEC. 1403. REVISION OF AUTHORITY ESTABLISHING THE ARMED FORCES
RETIREMENT HOME.

Section 1511 (24 U.S.C. 411) is amended to read as follows:

``SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RETIREMENT HOME.

``(a) Independent Establishment.--The Armed Forces
Retirement Home is an independent establishment in the
executive branch.
``(b) Purpose.--The purpose of the Retirement Home is to
provide, through the Armed Forces Retirement Home--Washington
and the Armed Forces Retirement Home--Gulfport, residences and
related services for certain retired and former members of the
Armed Forces.
``(c) Facilities.--(1) Each facility of the Retirement Home
referred to in paragraph (2) is a separate establishment of the
Retirement Home.
``(2) The United States Soldiers' and Airmen's Home is
hereby redesignated as the Armed Forces Retirement Home--
Washington. The Naval Home is hereby redesignated as the Armed
Forces Retirement Home--Gulfport.
``(d) Operation.--(1) The Chief Operating Officer of the
Armed Forces Retirement Home is the head of the Retirement
Home. The Chief Operating Officer is subject to the authority,
direction, and control of the Secretary of Defense.
``(2) Each facility of the Retirement Home shall be
maintained as a separate establishment of the Retirement Home
for administrative purposes and shall be under the authority,
direction, and control of the Director of that facility. The
Director of each facility of the Retirement Home is subject to
the authority, direction, and control of the Chief Operating
Officer.
``(e) Property and Facilities.--(1) The Retirement Home
shall include such property and facilities as may be acquired
under paragraph (2) or accepted under section 1515(f) for
inclusion in the Retirement Home.
``(2) The Secretary of Defense may acquire, for the benefit
of the Retirement Home, property and facilities for inclusion
in the Retirement Home.
``(3) The Secretary of Defense may dispose of any property
of the Retirement Home, by sale, lease, or otherwise, that the
Secretary determines is excess to the needs of the Retirement
Home. The proceeds from such a disposal of property shall be
deposited in the Armed Forces Retirement Home Trust Fund. No
such disposal of real property shall be effective earlier than
120 days after the date on which the Secretary transmits a
notification of the proposed disposal to the Committees on
Armed Services of the Senate and the House of Representatives.
``(f) Department of Defense Support.--The Secretary of
Defense may make available from the Department of Defense to
the Retirement Home, on a nonreimbursable basis, administrative
support and office services, legal and policy planning
assistance, access to investigative facilities of the Inspector
General of the Department of Defense and of the military
departments, and any other support necessary to enable the
Retirement Home to carry out its functions under this title.
``(g) Accreditation.--The Chief Operating Officer shall
endeavor to secure for each facility of the Retirement Home
accreditation by a nationally recognized civilian accrediting
organization, such as the Continuing Care Accreditation
Commission and the Joint Commission for Accreditation of Health
Organizations.
``(h) Annual Report.--The Secretary of Defense shall
transmit to Congress an annual report on the financial and
other affairs of the Retirement Home for each fiscal year.''.

SEC. 1404. CHIEF OPERATING OFFICER.

(a) Establishment and Authority of Position.--Section 1515
(24 U.S.C. 415) is amended to read as follows:

``SEC. 1515. CHIEF OPERATING OFFICER.

``(a) Appointment.--(1) The Secretary of Defense shall
appoint the Chief Operating Officer of the Retirement Home.
``(2) The Chief Operating Officer shall serve at the
pleasure of the Secretary of Defense.
``(3) The Secretary of Defense shall evaluate the
performance of the Chief Operating Officer at least once each
year.
``(b) Qualifications.--To qualify for appointment as the
Chief Operating Officer, a person shall--
``(1) be a continuing care retirement community
professional;
``(2) have appropriate leadership and management
skills; and
``(3) have experience and expertise in the
operation and management of retirement homes and in the
provision of long-term medical care for older persons.
``(c) Responsibilities.--(1) The Chief Operating Officer
shall be responsible to the Secretary of Defense for the
overall direction, operation, and management of the Retirement
Home and shall report to the Secretary on those matters.
``(2) The Chief Operating Officer shall supervise the
operation and administration of the Armed Forces Retirement
Home--Washington and the Armed Forces Retirement Home--
Gulfport, including the Local Boards of those facilities.
``(3) The Chief Operating Officer shall perform the
following duties:
``(A) Issue, and ensure compliance with,
appropriate rules for the operation of the Retirement
Home.
``(B) Periodically visit, and inspect the operation
of, the facilities of the Retirement Home.
``(C) Periodically examine and audit the accounts
of the Retirement Home.
``(D) Establish any advisory body or bodies that
the Chief Operating Officer considers to be necessary.
``(d) Compensation.--(1) The Secretary of Defense may
prescribe the pay of the Chief Operating Officer, except that
the annual rate of basic pay, including locality pay, of the
Chief Operating Officer may not exceed the annual rate of basic
pay payable for level III of the Executive Schedule under
section 5314 of title 5, United States Code.
``(2) In addition to basic pay and any locality pay
prescribed for the Chief Operating Officer, the Secretary may
award the Chief Operating Officer, not more than once each
year, a bonus based on the performance of the Chief Operating
Officer for the year. The Secretary shall prescribe the amount
of any such bonus.
``(3) The total amount of the basic pay and bonus paid the
Chief Operating Officer for a year under this section may not
exceed the annual rate of basic pay payable for level I of the
Executive Schedule under section 5312 of title 5, United States
Code.
``(e) Administrative Staff.--(1) The Chief Operating
Officer may, subject to the approval of the Secretary of
Defense, appoint a staff to assist in the performance of the
Chief Operating Officer's duties in the overall administration
of the Retirement Home.
``(2) The Chief Operating Officer shall prescribe the rates
of pay applicable to the members of the staff appointed under
paragraph (1), except that--
``(A) a staff member who is a member of the Armed
Forces on active duty or who is a full-time officer or
employee of the United States may not receive
additional pay by reason of service on the
administrative staff; and
``(B) the limitations in section 5373 of title 5,
United States Code, relating to pay set by
administrative action, shall apply to the rates of pay
prescribed under this paragraph.
``(f) Acceptance of Gifts.--(1) The Chief Operating Officer
may accept gifts of money, property, and facilities on behalf
of the Retirement Home.
``(2) Monies received as gifts, or realized from the
disposition of property and facilities received as gifts, shall
be deposited in the Armed Forces Retirement Home Trust Fund.''.
(b) Transfer of Authorities.--(1) The following provisions
are amended by striking ``Retirement Home Board'' each place it
appears and inserting ``Chief Operating Officer'':
(A) Section 1512 (24 U.S.C. 412), relating to
eligibility and acceptance for residence in the Armed
Forces Retirement Home.
(B) Section 1513(a) (24 U.S.C. 412(a)), relating to
services provided to residents of the Armed Forces
Retirement Home.
(C) Section 1518(c) (24 U.S.C. 418(c)), relating to
inspection of the Armed Forces Retirement Home.
(2) Section 1519(c) (24 U.S.C. 419(c)), relating to
authority to invest funds in the Armed Forces Retirement Home
Trust Fund, is amended by striking ``Director'' and inserting
``Chief Operating Officer''.
(3) Section 1521(a) (24 U.S.C. 421(a)), relating to payment
of residents for services, is amended by striking ``Chairman of
the Armed Forces Retirement Board'' and inserting ``Chief
Operating Officer''.
(4) Section 1522 (24 U.S.C. 422), relating to authority to
accept certain uncompensated services, is amended--
(A) in subsection (a)--
(i) by striking ``Chairman of the
Retirement Home Board or the Director of each
establishment'' and inserting ``Chief Operating
Officer or the Director of a facility''; and
(ii) by striking ``unless'' and all that
follows through ``Retirement Home Board'';
(B) in subsection (b)(1)--
(i) by striking ``Chairman of the
Retirement Home Board or the Director of the
establishment'' and inserting ``Chief Operating
Officer or the Director of a facility''; and
(ii) by inserting ``offering the services''
after ``notify the person'';
(C) in subsection (b)(2), by striking ``Chairman''
and inserting ``Chief Operating Officer'';
(D) in subsection (c), by striking ``Chairman of
the Retirement Home Board or the Director of an
establishment'' and inserting ``Chief Operating Officer
or the Director of a facility''; and
(E) in subsection (e)--
(i) by striking ``Chairman of the
Retirement Board or the Director of the
establishment'' in the first sentence and
inserting ``Chief Operating Officer or the
Director of a facility''; and
(ii) by striking ``Chairman'' in the second
sentence and inserting ``Chief Operating
Officer''.
(5) Section 1523(b) (24 U.S.C. 423(b)), relating to
preservation of historic buildings and grounds at the Armed
Forces Retirement Home--Washington, is amended by striking
``Chairman of the Retirement Home Board'' and inserting ``Chief
Operating Officer''.

SEC. 1405. RESIDENTS OF RETIREMENT HOME.

(a) Repeal of Requirement of Resident To Reapply After
Substantial Absence.--Subsection (e) of section 1512 (24 U.S.C.
412) is repealed.
(b) Fees Paid by Residents.--Section 1514 (24 U.S.C. 414)
is amended to read as follows:

``SEC. 1514. FEES PAID BY RESIDENTS.

``(a) Monthly Fees.--The Director of each facility of the
Retirement Home shall collect a monthly fee from each resident
of that facility.
``(b) Deposit of Fees.--The Directors shall deposit fees
collected under subsection (a) in the Armed Forces Retirement
Home Trust Fund.
``(c) Fixing Fees.--(1) The Chief Operating Officer, with
the approval of the Secretary of Defense, shall from time to
time prescribe the fees required by subsection (a). Changes to
such fees shall be based on the financial needs of the
Retirement Home and the ability of the residents to pay. A
change of a fee may not take effect until 120 days after the
Secretary of Defense transmits a notification of the change to
the Committees on Armed Services of the Senate and the House of
Representatives.
``(2) The fee shall be fixed as a percentage of the monthly
income and monthly payments (including Federal payments)
received by a resident. The percentage shall be the same for
each facility of the Retirement Home. The Secretary of Defense
may make any adjustment in a percentage that the Secretary
determines appropriate.
``(3) The fee shall be subject to a limitation on maximum
monthly amount. The amount of the limitation shall be
increased, effective on January 1 of each year, by the
percentage of the increase in retired pay and retainer pay that
takes effect on the preceding December 1 under subsection (b)
of section 1401a of title 10, United States Code, without
regard to paragraph (3) of such subsection. The first increase
in a limitation on maximum monthly amount shall take effect on
January 1, 2003.
``(d) Transitional Fee Structures.--(1) Until different
fees are prescribed and take effect under subsection (c), the
percentages and limitations on maximum monthly amount that are
applicable to fees charged residents of the Retirement Home are
(subject to any adjustment that the Secretary of Defense
determines appropriate) as follows:
``(A) For months beginning before January 1, 2002--
``(i) for a permanent health care resident,
65 percent (without limitation on maximum
monthly amount); and
``(ii) for a resident who is not a
permanent health care resident, 40 percent
(without limitation on maximum monthly amount).
``(B) For months beginning after December 31,
2001--
``(i) for an independent living resident,
35 percent, but not to exceed $1,000 each
month;
``(ii) for an assisted living resident, 40
percent, but not to exceed $1,500 each month;
and
``(iii) for a long-term care resident, 65
percent, but not to exceed $2,500 each month.
``(2) Notwithstanding the limitations on maximum monthly
amount prescribed under subsection (c) or set forth in
paragraph (1)(B), until the earlier of December 31, 2006, or
the date on which an independent living resident or assisted
living resident of the Armed Forces Retirement Home--Gulfport
occupies a renovated room at that facility, as determined by
the Secretary of Defense, the limitation on maximum monthly
amount applicable to the resident for months beginning after
December 31, 2001, shall be--
``(A) in the case of an independent living
resident, $800; and
``(B) in the case of an assisted living resident,
$1,300.

SEC. 1406. LOCAL BOARDS OF TRUSTEES.

Section 1516 (24 U.S.C. 416) is amended to read as follows:

``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

``(a) Establishment.--Each facility of the Retirement Home
shall have a Local Board of Trustees.
``(b) Duties.--The Local Board for a facility shall serve
in an advisory capacity to the Director of the facility and to
the Chief Operating Officer.
``(c) Composition.--(1) The Local Board for a facility
shall consist of at least 11 members who (except as otherwise
specifically provided) shall be appointed by the Secretary of
Defense in consultation with each of the Secretaries of the
military departments concerned. At least one member of the
Local Board shall have a perspective that is oriented toward
the Retirement Home overall. The Local Board for a facility
shall consist of the following members:
``(A) One member who is a civilian expert in
nursing home or retirement home administration and
financing from the geographical area of the facility.
``(B) One member who is a civilian expert in
gerontology from the geographical area of the facility.
``(C) One member who is a service expert in
financial management.
``(D) One representative of the Department of
Veterans Affairs regional office nearest in proximity
to the facility, who shall be designated by the
Secretary of Veterans Affairs.
``(E) One representative of the resident advisory
committee or council of the facility.
``(F) One enlisted representative of the Services'
Retiree Advisory Council.
``(G) The senior noncommissioned officer of one of
the Armed Forces.
``(H) One senior representative of the military
hospital nearest in proximity to the facility.
``(I) One senior judge advocate from one of the
Armed Forces.
``(J) The Director of the facility, who shall be a
nonvoting member.
``(K) One senior representative of one of the chief
personnel officers of the Armed Forces.
``(L) Other members designated by the Secretary of
Defense (if the Local Board is to have more than 11
members).
``(2) The Secretary of Defense shall designate one member
of a Local Board to serve as the chairman of the Local Board at
the pleasure of the Secretary of Defense.
``(d) Terms.--(1) Except as provided in subsections (e),
(f), and (g), the term of office of a member of a Local Board
shall be five years.
``(2) Unless earlier terminated by the Secretary of
Defense, a person may continue to serve as a member of the
Local Board after the expiration of the member's term until a
successor is appointed or designated, as the case may be.
``(e) Early Expiration of Term.--A member of a Local Board
who is a member of the Armed Forces or an employee of the
United States serves as a member of the Local Board only for as
long as the member is assigned to or serving in a position for
which the duties include the duty to serve as a member of the
Local Board.
``(f) Vacancies.--(1) A vacancy in the membership of a
Local Board shall be filled in the manner in which the original
appointment or designation was made, as the case may be.
``(2) A member appointed or designated to fill a vacancy
occurring before the end of the term of the predecessor of the
member shall be appointed or designated, as the case may be,
for the remainder of the term for which the predecessor was
appointed.
``(3) A vacancy in a Local Board shall not affect its
authority to perform its duties.
``(g) Early Termination.--The Secretary of Defense may
terminate the appointment of a member of a Local Board before
the expiration of the member's term for any reason that the
Secretary determines appropriate.
``(h) Compensation.--(1) Except as provided in paragraph
(2), a member of a Local Board shall--
``(A) be provided a stipend consistent with the
daily government consultant fee for each day on which
the member is engaged in the performance of services
for the Local Board; and
``(B) while away from home or regular place of
business in the performance of services for the Local
Board, be allowed travel expenses (including per diem
in lieu of subsistence) in the same manner as a person
employed intermittently in Government under sections
5701 through 5707 of title 5, United States Code.
``(2) A member of a Local Board who is a member of the
Armed Forces on active duty or a full-time officer or employee
of the United States shall receive no additional pay by reason
of serving a member of a Local Board.''.

SEC. 1407. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, AND STAFF
OF FACILITIES.

Section 1517 (24 U.S.C. 417) is amended to read as follows:

``SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, AND
STAFF OF FACILITIES.

``(a) Appointment.--The Secretary of Defense shall appoint
a Director, a Deputy Director, and an Associate Director for
each facility of the Retirement Home.
``(b) Director.--The Director of a facility shall--
``(1) be a civilian with experience as a continuing
care retirement community professional or a member of
the Armed Forces serving on active duty in a grade
below brigadier general or, in the case of the Navy,
rear admiral (lower half);
``(2) have appropriate leadership and management
skills; and
``(3) be required to pursue a course of study to
receive certification as a retirement facilities
director by an appropriate civilian certifying
organization, if the Director is not so certified at
the time of appointment.
``(c) Duties of Director.--(1) The Director of a facility
shall be responsible for the day-to-day operation of the
facility, including the acceptance of applicants to be
residents of that facility.
``(2) The Director of a facility shall keep accurate and
complete records of the facility.
``(d) Deputy Director.--(1) The Deputy Director of a
facility shall--
``(A) be a civilian with experience as a continuing
care retirement community professional or a member of
the Armed Forces serving on active duty in a grade
below colonel or, in the case of the Navy, captain; and
``(B) have appropriate leadership and management
skills.
``(2) The Deputy Director of a facility shall serve at the
pleasure of the Secretary of Defense.
``(e) Duties of Deputy Director.--The Deputy Director of a
facility shall, under the authority, direction, and control of
the Director of the facility, perform such duties as the
Director may assign.
``(f) Associate Director.--(1) The Associate Director of a
facility shall--
``(A) be a member of the Armed Forces serving on
active duty in the grade of Sergeant Major, Master
Chief Petty Officer, or Chief Master Sergeant or a
member or former member retired in that grade; and
``(B) have appropriate leadership and management
skills.
``(2) The Associate Director of a facility shall serve at
the pleasure of the Secretary of Defense.
``(g) Duties of Associate Director.--The Associate Director
of a facility shall, under the authority, direction, and
control of the Director and Deputy Director of the facility,
serve as ombudsman for the residents and perform such other
duties as the Director may assign.
``(h) Staff.--(1) The Director of a facility may, subject
to the approval of the Chief Operating Officer, appoint and
prescribe the pay of such principal staff as the Director
considers appropriate to assist the Director in operating the
facility.
``(2) The principal staff of a facility shall include
persons with experience and expertise in the operation and
management of retirement homes and in the provision of long-
term medical care for older persons.
``(i) Annual Evaluation of Directors.--(1) The Chief
Operating Officer shall evaluate the performance of each of the
Directors of the facilities of the Retirement Home each year.
``(2) The Chief Operating Officer shall submit to the
Secretary of Defense any recommendations regarding a Director
that the Chief Operating Officer determines appropriate taking
into consideration the annual evaluation.''.

SEC. 1408. DISPOSITION OF EFFECTS OF DECEASED PERSONS AND UNCLAIMED
PROPERTY.

(a) Legal Representation for Retirement Home.--Subsection
(b)(2)(A) of section 1520 (24 U.S.C. 420) is amended by
inserting ``who is a full-time officer or employee of the
United States or a member of the Armed Forces on active duty''
after ``may designate an attorney''.
(b) Correction of Reference.--Subsection (b)(1)(B) of such
section is amended by inserting ``Armed Forces'' before
``Retirement Home Trust Fund''.

SEC. 1409. TRANSITIONAL PROVISIONS.

Part B is amended by striking sections 1531, 1532, and 1533
and inserting the following new sections:

``SEC. 1531. TEMPORARY CONTINUATION OF ARMED FORCES RETIREMENT HOME
BOARD.

``Until the Secretary of Defense appoints the first Chief
Operating Officer after the enactment of the National Defense
Authorization Act for Fiscal Year 2002, the Armed Forces
Retirement Home Board, as constituted on the day before the
date of the enactment of that Act, shall continue to serve and
shall perform the duties of the Chief Operating Officer.

``SEC. 1532. DIRECTORS OF FACILITIES.

``(a) Active Duty Officers.--During the three-year period
beginning on the date of the enactment of the National Defense
Authorization Act for Fiscal Year 2002, the Directors and
Deputy Directors of the facilities shall be members of the
Armed Forces serving on active duty, notwithstanding the
authority in subsections (b) and (d) of section 1517 for the
Directors and Deputy Directors to be civilians.
``(b) Temporary Continuation of Director of the Armed
Forces Retirement Home--Washington.--The person serving as the
Director of the Armed Forces Retirement Home--Washington on the
day before the enactment of the National Defense Authorization
Act for Fiscal Year 2002 may continue to serve as the Director
of that facility until April 2, 2002.

``SEC. 1533. TEMPORARY CONTINUATION OF INCUMBENT DEPUTY DIRECTORS.

``A person serving as the Deputy Director of a facility of
the Retirement Home on the day before the enactment of the
National Defense Authorization Act for Fiscal Year 2002 may
continue to serve, at the pleasure of the Secretary of Defense,
as the Deputy Director until the date on which a Deputy
Director is appointed for that facility under section 1517,
except that the service in that position may not continue under
this section after December 31, 2004.''.

SEC. 1410. CONFORMING AND CLERICAL AMENDMENTS AND REPEALS OF OBSOLETE
PROVISIONS.

(a) Conforming Amendments.--(1) Section 1513(b) (24 U.S.C.
413(b)), relating to services provided to residents of the
Armed Forces Retirement Home, is amended by striking
``maintained as a separate establishment'' in the second
sentence.
(2) The heading for section 1519 (24 U.S.C. 419) is amended
to read as follows:

``SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST FUND.''.

(3) Section 1520 (24 U.S.C. 420), relating to disposition
of effects of deceased persons and unclaimed property, is
amended--
(A) in subsection (a), by striking ``each facility
that is maintained as a separate establishment'' and
inserting ``a facility'';
(B) in subsection (b)(2)(A), by striking
``maintained as a separate establishment''; and
(C) in subsection (e), by striking ``Directors''
and inserting ``Director of the facility''.
(4)(A) Section 1523 (24 U.S.C. 423), relating to
preservation of historic buildings and grounds at the Armed
Forces Retirement Home--Washington, is amended by striking
``United States Soldiers' and Airmen's Home'' each place it
appears and inserting ``Armed Forces Retirement Home--
Washington''.
(B) The heading for such section is amended to read as
follows:

``SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND GROUNDS AT THE
ARMED FORCES RETIREMENT HOME--WASHINGTON.''.

(5) Section 1524 (24 U.S.C. 424), relating to conditional
supervisory control of the Retirement Home Board, is repealed.
(b) Repeal of Obsolete Provisions.--The following
provisions are repealed:
(1) Section 1512(f) (24 U.S.C. 412(f)), relating to
the applicability of certain eligibility requirements.
(2) Section 1519(d) (24 U.S.C. 419(d)), relating to
transitional accounts in the Armed Forces Retirement
Home Trust Fund.
(3) Part C, relating to effective date and
authorization of appropriations.
(c) Addition of Table of Contents.--Section 1501 (24 U.S.C.
401 note) is amended--
(1) by inserting ``(a) Short Title.--'' before
``This title''; and
(2) by adding at the end the following new
subsection:
``(b) Table of Contents.--The table of contents for this
title is as follows:

``Sec. 1501. Short title; table of contents.
``Sec. 1502. Definitions.

``Part A--Establishment and Operation of Retirement Home

``Sec. 1511. Establishment of the Armed Forces Retirement Home.
``Sec. 1512. Residents of Retirement Home.
``Sec. 1513. Services provided residents.
``Sec. 1514. Fees paid by residents.
``Sec. 1515. Chief Operating Officer.
``Sec. 1516. Local Boards of Trustees.
``Sec. 1517. Directors, Deputy Directors, Associate Directors, and staff
of facilities.
``Sec. 1518. Inspection of Retirement Home.
``Sec. 1519. Armed Forces Retirement Home Trust Fund.
``Sec. 1520. Disposition of effects of deceased persons; unclaimed
property.
``Sec. 1521. Payment of residents for services.
``Sec. 1522. Authority to accept certain uncompensated services.
``Sec. 1523. Preservation of historic buildings and grounds at the Armed
Forces Retirement Home--Washington.

``Part B--Transitional Provisions

``Sec. 1531. Temporary Continuation of Armed Forces Retirement Home
Board.
``Sec. 1532. Directors of Facilities.
``Sec. 1533. Temporary Continuation of Incumbent Deputy Directors.''.

TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

Subtitle A--Increased Funding for Combating Terrorism

Subtitle B--Policy Matters Relating to Combating Terrorism

Subtitle A--Increased Funding for Combating Terrorism

SEC. 1501. DEFINITIONS.

For purposes of this subtitle:
(1) The term ``ETR Supplemental Appropriations Act,
2001'' means the 2001 Emergency Supplemental
Appropriations Act for Recovery from and Response to
Terrorist Attacks on the United States (Public Law 107-
38).
(2) The term ``Emergency Supplemental
Appropriations Act, 2002'' means an Act (or a portion
of an Act) making available for obligation emergency
appropriations that were provided, subject to enactment
in a subsequent appropriation Act, in the ETR
Supplemental Appropriations Act, 2001.

SEC. 1502. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR FISCAL YEAR
2001 MADE BY PUBLIC LAW 107-38 AND ALLOCATED FOR
NATIONAL DEFENSE FUNCTIONS.

(a) Adjustment in Authorization Amounts.--(1) Subject to
paragraph (2), amounts authorized to be appropriated for fiscal
year 2001 in the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001 (as enacted into law by Public Law
106-398) are hereby increased, with respect to any such
authorized amount, by the amount (if any) by which
appropriations pursuant to such authorization are increased by
amounts appropriated in the ETR Supplemental Appropriations
Act, 2001, and transferred by the President (before the date of
the enactment of this Act) to the Department of Defense or the
National Nuclear Security Administration and subsequently
allocated to such appropriations.
(2) Authorization amounts may not be increased under
paragraph (1) in excess of amounts derived from allocation of
the amounts specified in subsection (b), for the Department of
Defense, and in subsection (c), for the National Nuclear
Security Administration.
(b) Department of Defense.--Amounts referred to in
subsection (a)(2) for the Department of Defense are amounts for
emergency expenses to respond to the terrorist attacks on the
United States that occurred on September 11, 2001, allocated to
the Department of Defense for fiscal year 2001 for the use of
the Armed Forces and other activities and agencies of the
Department of Defense, including the purposes stated in section
1504, in the total amount of $13,741,000,000, as follows:
(1) Increased situational awareness.--For Increased
Situational Awareness, $4,272,000,000.
(2) Enhanced force protection.--For Enhanced Force
Protection, $1,509,000,000.
(3) Improved command and control.--For Improved
Command and Control, $1,403,000,000.
(4) Increased worldwide posture.--For Increased
Worldwide Posture, $3,603,000,000.
(5) Offensive counterterrorism.--For Offensive
Counterterrorism, $1,459,000,000.
(6) Initial crisis response.--For Initial Crisis
Response, $637,000,000.
(7) Pentagon repair and upgrade.--For Pentagon
Repair and Upgrade Activities, $530,000,000.
(8) Fuel costs.--For increased fuel costs,
$100,000,000.
(9) Airport and border security.--For airport and
border security, $228,000,000.
(c) NNSA.--The amount referred to in subsection (a)(2) for
the National Nuclear Security Administration is the amount of
$5,000,000 for emergency expenses to respond to the terrorist
attacks on the United States that occurred on September 11,
2001, allocated for fiscal year 2001 atomic energy defense
activities of the National Nuclear Security Administration for
weapons activities.
(d) Treatment as Additional Authorizations.--The amounts
authorized to be appropriated by this section are in addition
to amounts otherwise authorized to be appropriated by the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001 (as enacted into law by Public Law 106-398) or any other
Act, for fiscal year 2001 for the use of the Armed Forces and
other activities and agencies of the Department of Defense and
for the use of the National Nuclear Security Administration.

SEC. 1503. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR
FISCAL YEAR 2002.

(a) Department of Defense.--For emergency expenses to
respond to the September 11, 2001, terrorist attacks on the
United States, funds are hereby authorized to be appropriated
to the Defense Emergency Response Fund for fiscal year 2002 for
the use of the Armed Forces and other activities and agencies
of the Department of Defense, including the purposes stated in
section 1504, in the total amount of $7,349,000,000, as
follows:
(1) Increased situational awareness.--For Increased
Situational Awareness, $1,735,000,000.
(2) Enhanced force protection.--For Enhanced Force
Protection, $881,000,000.
(3) Improved command and control.--For Improved
Command and Control, $219,000,000.
(4) Increased worldwide posture.--For Increased
Worldwide Posture, $2,938,000,000.
(5) Offensive counterterrorism.--For Offensive
Counterterrorism, $545,000,000.
(6) Initial crisis response.--For Initial Crisis
Response, $106,000,000.
(7) Pentagon repair and upgrade.--For Pentagon
Repair and Upgrade Activities, $925,000,000.
(b) NNSA.--For emergency expenses to respond to the
September 11, 2001, terrorist attacks on the United States and
for other expenses to increase the security of the Nation's
nuclear weapons complex, funds are hereby authorized to be
appropriated for fiscal year 2002 for the atomic energy defense
activities of the National Nuclear Security Administration in
the amount of $106,000,000, to be available for weapons
activities.
(c) Department of Energy.--For emergency expenses to
respond to the September 11, 2001, terrorist attacks on the
United States, funds are hereby authorized to be appropriated
for fiscal year 2002 to the Department of Energy in the total
amount of $11,700,000, as follows:
(1) For Defense Environmental Restoration and Waste
Management, $8,200,000.
(2) For Other Defense Activities, $3,500,000.
(d) Transfer of Defense Funds.--In order to carry out the
specified purposes in subsection (a), the Secretary of Defense
may transfer amounts authorized by subsection (a) from the
Defense Emergency Response Fund to any other defense
appropriations account, including the account ``Support for
International Sporting Events, Defense'' and any military
construction account as provided in section 1504.
(e) Availability.--Amounts appropriated pursuant to
authorizations in this section may remain available until
expended, if so provided in appropriations Acts.
(f) Source of Funds.--Amounts appropriated pursuant to
authorizations in this section shall be derived from amounts
provided, subject to subsequent appropriation, in the ETR
Supplemental Appropriations Act, 2001.
(g) Treatment as Additional Authorizations.--The amounts
authorized to be appropriated by this section are in addition
to amounts otherwise authorized to be appropriated, by the
other provisions of this Act or by any other Act, for fiscal
year 2001 for the use of the Armed Forces and other activities
and agencies of the Department of Defense and for the use of
the National Nuclear Security Administration.

SEC. 1504. AUTHORIZATION OF USE OF FUNDS FOR MILITARY CONSTRUCTION
PROJECTS.

(a) Authority for Use of Funds.--Qualified emergency
defense appropriations may be used to acquire real property and
carry out military construction projects not otherwise
authorized by law that the Secretary of Defense determines are
necessary to respond to or protect against acts or threatened
acts of terrorism or to respond to the terrorist attacks on the
United States that occurred on September 11, 2001.
(b) Project Authorization.--Any project with respect to
which the Secretary makes a determination under subsection (a)
and that is to be carried out using qualified emergency defense
appropriations is hereby authorized for purposes of section
2802 of title 10, United States Code.
(c) Qualified Emergency Defense Appropriations.--For
purposes of this subsection, the term ``qualified emergency
defense appropriations'' means emergency appropriations
available to the Department of Defense that are authorized by
section 1502 or 1503.

SEC. 1505. TREATMENT OF TRANSFERRED AMOUNTS.

Amounts transferred under authority of section 1502 or 1503
shall be merged with, and shall be available for the same
purposes and for the same time period as, the accounts to which
transferred. The transfer authority under those sections is in
addition to the transfer authority provided by section 1001 or
any other provision of law.

SEC. 1506. QUARTERLY REPORTS.

(a) Quarterly Report.--Promptly after the end of each
quarter of a fiscal year, the Secretary of Defense and the
Director of Central Intelligence shall each submit to the
congressional defense committees a report (in classified and
unclassified form, as needed) on the use of funds authorized by
this subtitle. Each such report shall, at a minimum, specify
the following:
(1) Any balance of funds remaining in the Defense
Emergency Response Fund as of the end of the quarter
covered by the report.
(2) The accounts to which funds have been
transferred or are to be transferred and the amount of
each such transfer.
(3) Within such accounts, each project to which any
such funds have been transferred or are to be
transferred and the amount of funds obligated and the
amount expended for each such project as of the end of
the quarter covered by the report.
(b) Initial Report.--The first report under subsection (a)
shall be submitted not later than January 2, 2002.
(c) Final Report.--No further report under subsection (a)
is required after all funds made available to the Department of
Defense pursuant to such Act have been obligated.

Subtitle B--Policy Matters Relating to Combating Terrorism

SEC. 1511. STUDY AND REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE
WITH RESPECT TO HOMELAND SECURITY.

(a) Study Required.--The Secretary of Defense shall conduct
a study on the appropriate role of the Department of Defense
with respect to homeland security. The study shall identify and
describe the policies, plans, and procedures of the Department
of Defense for combating terrorism, including for the provision
of support for the consequence management activities of other
Federal, State, and local agencies. The study shall
specifically identify the following:
(1) The strategy, roles, and responsibilities of
the Department of Defense for combating terrorism.
(2) How the Department of Defense will interact
with the Office of Homeland Security and how
intelligence sharing efforts of the Department of
Defense will be organized relative to other Federal
agencies and departments and State and local
governments.
(3) The ability of the Department of Defense to
protect the United States from airborne threats,
including threats originating from within the borders
of the United States.
(4) Improvements that could be made to enhance the
security of the people of the United States against
terrorist threats and recommended actions (including
legislative action) and programs to address and
overcome existing vulnerabilities.
(5) The policies, plans, and procedures relating to
how the civilian official in the Department of Defense
responsible for combating terrorism and the Joint Task
Force Civil Support of the Joint Forces Command will
coordinate the performance of functions for combating
terrorism with--
(A) teams in the Department of Defense that
have responsibilities for responding to acts or
threats of terrorism, including--
(i) weapons of mass destruction
civil support teams when operating as
the National Guard under the command of
the Governor of a State, the Governor
of Puerto Rico, or the Commanding
General of the District of Columbia
National Guard;
(ii) weapons of mass destruction
civil support teams when operating as
the Army National Guard of the United
States or the Air National Guard of the
United States under the command of the
President;
(iii) teams in the departments and
agencies of the Federal Government
other than the Department of Defense
that have responsibilities for
responding to acts or threats of
terrorism;
(iv) organizations outside the
Federal Government, including any
State, local and private entities, that
function as first responders to acts or
threats of terrorism; and
(v) units and organizations of the
Reserve Components of the Armed Forces
that have missions relating to
combating terrorism;
(B) the Director of Military Support of the
Department of the Army;
(C) any preparedness plans to combat
terrorism that are developed for installations
of the Department of Defense by the commanders
of the installations and the integration of
those plans with the plans of the teams and
organizations described in subparagraph (A);
(D) the policies, plans and procedures for
using and coordinating the integrated
vulnerability assessment teams of the Joint
Staff inside and outside the United States; and
(E) the missions of Fort Leonard Wood and
other installations for training units, weapons
of mass destruction civil support teams and
other teams, and individuals in combating
terrorism.
(6) The appropriate number and missions of the
teams referred to in paragraph (5)(A)(i).
(7) How the Department of Defense Weapons of Mass
Destruction Civil Support Teams should interact with
the Federal Bureau of Investigation and the Federal
Emergency Management Agency during crisis response and
consequence management situations.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to Congress a
report including the findings of the study conducted under
subsection (a).

SEC. 1512. COMBATING TERRORISM READINESS INITIATIVES FUND FOR COMBATANT
COMMANDS.

(a) Funding for Initiatives.--Chapter 6 of title 10, United
States Code, is amended by inserting after section 166a the
following new section:

``Sec. 166b. Combatant commands: funding for combating terrorism
readiness initiatives

``(a) Combating Terrorism Readiness Initiatives Fund.--From
funds made available in any fiscal year for the budget account
in the Department of Defense known as the `Combating Terrorism
Readiness Initiatives Fund', the Chairman of the Joint Chiefs
of Staff may provide funds to the commander of a combatant
command, upon the request of the commander, or, with respect to
a geographic area or areas not within the area of
responsibility of a commander of a combatant command, to an
officer designated by the Chairman of the Joint Chiefs of Staff
for such purpose. The Chairman may provide such funds for
initiating any activity named in subsection (b) and for
maintaining and sustaining the activity for the fiscal year in
which initiated and one additional fiscal year.
``(b) Authorized Activities.--Activities for which funds
may be provided under subsection (a) are the following:
``(1) Procurement and maintenance of physical
security equipment.
``(2) Improvement of physical security sites.
``(3) Under extraordinary circumstances--
``(A) physical security management
planning;
``(B) procurement and support of security
forces and security technicians;
``(C) security reviews and investigations
and vulnerability assessments; and
``(D) any other activity relating to
physical security.
``(c) Priority.--The Chairman of the Joint Chiefs of Staff,
in considering requests for funds in the Combating Terrorism
Readiness Initiatives Fund, should give priority consideration
to emergency or emergent unforeseen high-priority requirements
for combating terrorism.
``(d) Relationship to Other Funding.--Any amount provided
by the Chairman of the Joint Chiefs of Staff for a fiscal year
out of the Combating Terrorism Readiness Initiatives Fund for
an activity referred to in subsection (b) shall be in addition
to amounts otherwise available for that activity for that
fiscal year.
``(e) Limitation.--Funds may not be provided under this
section for any activity that has been denied authorization by
Congress.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 166a the following new item:

``166b. Combatant commands: funding for combating terrorism readiness
initiatives.''.

SEC. 1513. CONVEYANCES OF EQUIPMENT AND RELATED MATERIALS LOANED TO
STATE AND LOCAL GOVERNMENTS AS ASSISTANCE FOR
EMERGENCY RESPONSE TO A USE OR THREATENED USE OF A
WEAPON OF MASS DESTRUCTION.

Section 1412(e) of the Defense Against Weapons of Mass
Destruction Act of 1996 (title XIV of Public Law 104-201; 110
Stat. 2718; 50 U.S.C. 2312(e)) is amended by adding at the end
the following new paragraph:
``(5) A conveyance of ownership of United States
property to a State or local government, without cost
and without regard to subsection (f) and title II of
the Federal Property and Administrative Services Act of
1949 (or any other provision of law relating to the
disposal of property of the United States), if the
property is equipment, or equipment and related
materials, that is in the possession of the State or
local government on the date of the enactment of the
National Defense Authorization Act for Fiscal Year 2002
pursuant to a loan of the property as assistance under
this section.''.

SEC. 1514. TWO-YEAR EXTENSION OF ADVISORY PANEL TO ASSESS DOMESTIC
RESPONSE CAPABILITIES FOR TERRORISM INVOLVING
WEAPONS OF MASS DESTRUCTION.

(a) Extension of Advisory Panel.--Section 1405 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (50 U.S.C. 2301 note) is amended--
(1) in subsection (h)(2), by striking ``2001'' and
inserting ``2003''; and
(2) in subsection (l), by striking ``three years''
and inserting ``five years''.
(b) Pay and Expenses of Members.--(1) Subsection (k) of
such section is amended to read as follows:
``(k) Compensation of Panel Members.--The provisions of
paragraph (4) of section 591(c) of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 1999
(as contained in section 101(d) of division A of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act,
1999 (Public Law 105-277; 112 Stat. 2681-212)), shall apply to
members of the panel in the same manner as to members of the
National Commission on Terrorism under that paragraph.''.
(2) The amendment made by paragraph (1) shall apply with
respect to periods of service on the advisory panel under
section 1405 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 on or after the date of
the enactment of this Act.

TITLE XVI--UNIFORMED SERVICES VOTING

SEC. 1601. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF VOTING.

(a) Sense of Congress.--It is the sense of Congress that
each person who is an administrator of a Federal, State, or
local election--
(1) should be aware of the importance of the
ability of each uniformed services voter to exercise
the right to vote; and
(2) should perform that person's duties as an
election administrator with the intent to ensure that--
(A) each uniformed services voter receives
the utmost consideration and cooperation when
voting;
(B) each valid ballot cast by such a voter
is duly counted; and
(C) all eligible American voters,
regardless of race, ethnicity, disability, the
language they speak, or the resources of the
community in which they live, should have an
equal opportunity to cast a vote and to have
that vote counted.
(b) Uniformed Services Voter Defined.--In this section, the
term ``uniformed services voter'' means--
(1) a member of a uniformed service (as defined in
section 101(a)(5) of title 10, United States Code) in
active service;
(2) a member of the merchant marine (as defined in
section 107 of the Uniformed and Overseas Citizens
Absentee Voting Act (42 U.S.C. 1973ff-6)); and
(3) a spouse or dependent of a member referred to
in paragraph (1) or (2) who is qualified to vote.

SEC. 1602. VOTING ASSISTANCE PROGRAMS.

(a) In General.--(1) Chapter 80 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 1566. Voting assistance: compliance assessments; assistance

``(a) Regulations.--The Secretary of Defense shall
prescribe regulations to require that the Army, Navy, Air
Force, and Marine Corps ensure their compliance with any
directives issued by the Secretary of Defense in implementing
any voting assistance program.
``(b) Voting Assistance Programs Defined.--In this section,
the term `voting assistance programs' means--
``(1) the Federal Voting Assistance Program carried
out under the Uniformed and Overseas Citizens Absentee
Voting Act (42 U.S.C. 1973ff et seq.); and
``(2) any similar program.
``(c) Annual Effectiveness and Compliance Reviews.--(1) The
Inspector General of each of the Army, Navy, Air Force, and
Marine Corps shall conduct--
``(A) an annual review of the effectiveness of
voting assistance programs; and
``(B) an annual review of the compliance with
voting assistance programs of that armed force.
``(2) Upon the completion of each annual review under
paragraph (1), each Inspector General specified in that
paragraph shall submit to the Inspector General of the
Department of Defense a report on the results of each such
review. Such report shall be submitted in time each year to be
reflected in the report of the Inspector General of the
Department of Defense under paragraph (3).
``(3) Not later than March 31 each year, the Inspector
General of the Department of Defense shall submit to Congress a
report on--
``(A) the effectiveness during the preceding
calendar year of voting assistance programs; and
``(B) the level of compliance during the preceding
calendar year with voting assistance programs of each
of the Army, Navy, Air Force, and Marine Corps.
``(d) Inspector General Assessments.--(1) The Inspector
General of the Department of Defense shall periodically conduct
at Department of Defense installations unannounced assessments
of the compliance at those installations with--
``(A) the requirements of the Uniformed and
Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff
et seq.);
``(B) Department of Defense regulations regarding
that Act and the Federal Voting Assistance Program
carried out under that Act; and
``(C) other requirements of law regarding voting by
members of the armed forces.
``(2) The Inspector General shall conduct an assessment
under paragraph (1) at not less than 10 Department of Defense
installations each calendar year.
``(3) Each assessment under paragraph (1) shall include a
review of such compliance--
``(A) within units to which are assigned, in the
aggregate, not less than 20 percent of the personnel
assigned to duty at that installation;
``(B) within a representative survey of members of
the armed forces assigned to that installation and
their dependents; and
``(C) within unit voting assistance officers to
measure program effectiveness.
``(e) Regular Military Department Assessments.--The
Secretary of each military department shall include in the set
of issues and programs to be reviewed during any management
effectiveness review or inspection at the installation level an
assessment of compliance with the Uniformed and Overseas
Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.) and
with Department of Defense regulations regarding the Federal
Voting Assistance Program.
``(f) Voting Assistance Officers.--Voting assistance
officers shall be appointed or assigned under Department of
Defense regulations. Commanders at all levels are responsible
for ensuring that unit voting officers are trained and equipped
to provide information and assistance to members of the armed
forces on voting matters. Performance evaluation reports
pertaining to a member who has been assigned to serve as a
voting assistance officer shall comment on the performance of
the member as a voting assistance officer.
``(g) Delivery of Mail From Overseas Preceding Federal
Elections.--(1) During the four months preceding a general
Federal election month, the Secretary of Defense shall
periodically conduct surveys of all overseas locations and
vessels at sea with military units responsible for collecting
mail for return shipment to the United States and all port
facilities in the United States and overseas where military-
related mail is collected for shipment to overseas locations or
to the United States. The purpose of each survey shall be to
determine if voting materials are awaiting shipment at any such
location and, if so, the length of time that such materials
have been held at that location. During the fourth and third
months before a general Federal election month, such surveys
shall be conducted biweekly. During the second and first months
before a general Federal election month, such surveys shall be
conducted weekly.
``(2) The Secretary shall ensure that voting materials are
transmitted expeditiously by military postal authorities at all
times.
``(3) In this section, the term `general Federal election
month' means November in an even-numbered year.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``1566. Voting assistance: compliance assessments; assistance.''.

(b) Initial Report.--The first report under section
1566(c)(3) of title 10, United States Code, as added by
subsection (a), shall be submitted not later than March 31,
2003.

SEC. 1603. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

Article VII of the Soldiers' and Sailors' Civil Relief Act
of 1940 (50 U.S.C. App. 590 et seq.) is amended by adding at
the end the following:
``Sec. 704. (a) For purposes of voting for any Federal
office (as defined in section 301 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431)) or a State or local
office, a person who is absent from a State in compliance with
military or naval orders shall not, solely by reason of that
absence--
``(1) be deemed to have lost a residence or
domicile in that State, without regard to whether or
not the person intends to return to that State;
``(2) be deemed to have acquired a residence or
domicile in any other State; or
``(3) be deemed to have become a resident in or a
resident of any other State.
``(b) In this section, the term `State' includes a
territory or possession of the United States, a political
subdivision of a State, territory, or possession, and the
District of Columbia.''.

SEC. 1604. ELECTRONIC VOTING DEMONSTRATION PROJECT.

(a) Establishment of Demonstration Project.--
(1) In general.--Subject to paragraph (2), the
Secretary of Defense shall carry out a demonstration
project under which absent uniformed services voters
are permitted to cast ballots in the regularly
scheduled general election for Federal office for
November 2002 through an electronic voting system. The
project shall be carried out with participation of
sufficient numbers of absent uniformed services voters
so that the results are statistically relevant.
(2) Authority to delay implementation.--If the
Secretary of Defense determines that the implementation
of the demonstration project under paragraph (1) with
respect to the regularly scheduled general election for
Federal office for November 2002 may adversely affect
the national security of the United States, the
Secretary may delay the implementation of such
demonstration project until the regularly scheduled
general election for Federal office for November 2004.
The Secretary shall notify the Committee on Armed
Services and the Committee on Rules and Administration
of the Senate and the Committee on Armed Services and
the Committee on House Administration of the House of
Representatives of any decision to delay implementation
of the demonstration project.
(b) Coordination With State Election Officials.--The
Secretary shall carry out the demonstration project under this
section through cooperative agreements with State election
officials of States that agree to participate in the project.
(c) Report to Congress.--Not later than June 1 of the year
following the year in which the demonstration project is
conducted under this section, the Secretary of Defense shall
submit to Congress a report analyzing the demonstration
project. The Secretary shall include in the report any
recommendations the Secretary considers appropriate for
continuing the project on an expanded basis for absent
uniformed services voters during the next regularly scheduled
general election for Federal office.
(d) Definitions.--In this section:
(1) Absent uniformed services voter.--The term
``absent uniformed services voter'' has the meaning
given that term in section 107(1) of the Uniformed and
Overseas Citizens Absentee Voting Act (42 U.S.C.
1973ff-6(1)).
(2) State.--The term ``State'' includes the
District of Columbia, the Commonwealth of Puerto Rico,
Guam, the Virgin Islands, and American Samoa.

SEC. 1605. GOVERNORS' REPORTS ON IMPLEMENTATION OF RECOMMENDATIONS FOR
CHANGES IN STATE LAW MADE UNDER FEDERAL VOTING
ASSISTANCE PROGRAM.

(a) Reports.--(1) Whenever a State receives a uniformed
services voting assistance legislative recommendation from the
Secretary of Defense, acting as the Presidential designee, the
chief executive authority of that State shall, not later than
90 days after receipt of that recommendation, provide a report
on the status of implementation of that recommendation by that
State.
(2) If a legislative recommendation referred to in
paragraph (1) has been implemented, in whole or in part, by a
State, the report of the chief executive authority of that
State under that paragraph with respect to that recommendation
shall include a description of the changes made to State law to
implement the recommendation. If the recommendation has not
been implemented, the report shall include a statement of the
status of the recommendation before the State legislature and a
statement of any recommendation the chief executive officer has
made or intends to make to the legislature with respect to that
recommendation.
(3) Any report under paragraph (1) shall be transmitted to
the Secretary of Defense, acting as the Presidential designee.
The Secretary shall transmit a copy of the response to each
Member of Congress who represents that State.
(b) Period of Applicability.--This section applies with
respect to any uniformed services voting assistance legislative
recommendation transmitted to a State by the Secretary of
Defense, acting as the Presidential designee, during the three-
year period beginning on the date of the enactment of this Act.
(c) Definitions.--In this section:
(1) The term ``uniformed services voting assistance
legislative recommendation'' means a recommendation of
the Presidential designee for a modification in the
laws of a State for the purpose of improving the access
to the polls of absent uniformed services voters and
overseas voters.
(2) The term ``Presidential designee'' means the
head of the executive department designated by the
President under section 101(a) of the Uniformed and
Overseas Citizens Absentee Voting Act (42 U.S.C.
1973ff(a)).
(3) The term ``State'' includes the District of
Columbia, the Commonwealth of Puerto Rico, Guam, the
Virgin Islands, and American Samoa.
(4) The term ``Member of Congress'' includes a
Delegate or Resident Commissioner to the Congress.

SEC. 1606. SIMPLIFICATION OF VOTER REGISTRATION AND ABSENTEE BALLOT
APPLICATION PROCEDURES FOR ABSENT UNIFORMED
SERVICES AND OVERSEAS VOTERS.

(a) Requirement for States To Accept Official Form for
Simultaneous Voter Registration and Absentee Ballot
Application.--
(1) In general.--Section 102 of the Uniformed and
Overseas Citizens Absentee Voting Act (42 U.S.C.
1973ff-1) is amended--
(A) in paragraph (2)--
(i) by striking ``general, special,
primary, or runoff'';
(ii) by inserting ``and absentee
ballot application'' after ``voter
registration application'';
(iii) by striking ``and'' after the
semicolon at the end;
(B) by striking the period at the end of
paragraph (3) and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(4) use the official post card form (prescribed
under section 101) for simultaneous voter registration
application and absentee ballot application.''.
(2) Conforming amendment.--Section 101(b)(2) of
such Act (42 U.S.C. 1973ff(b)(2)) is amended by
striking ``as recommended in section 104'' and
inserting ``as required under section 102(4)''.
(b) Use of Single Application for All Subsequent
Elections.--Section 104 of such Act (42 U.S.C. 1973ff-3) is
amended to read as follows:

``SEC. 104. USE OF SINGLE APPLICATION FOR ALL SUBSEQUENT ELECTIONS.

``(a) In General.--If a State accepts and processes an
official post card form (prescribed under section 101)
submitted by an absent uniformed services voter or overseas
voter for simultaneous voter registration and absentee ballot
application (in accordance with section 102(a)(4)) and the
voter requests that the application be considered an
application for an absentee ballot for each subsequent election
for Federal office held in the State during that year, the
State shall provide an absentee ballot to the voter for each
subsequent election for Federal office held in the State during
that year.
``(b) Exception for Voters Changing Registration.--
Subsection (a) shall not apply with respect to a voter
registered to vote in a State for any election held after the
voter notifies the State that the voter no longer wishes to be
registered to vote in the State or after the State determines
that the voter has registered to vote in another State.
``(c) Revision of Official Post Card Form.--The
Presidential designee shall revise the official post card form
(prescribed under section 101) to enable a voter using the form
to--
``(1) request an absentee ballot for each election
for Federal office held in a State during a year; or
``(2) request an absentee ballot for only the next
scheduled election for Federal office held in a State.
``(d) No Effect on Voter Removal Programs.--Nothing in this
section may be construed to prevent a State from removing any
voter from the rolls of registered voters in the State under
any program or method permitted under section 8 of the National
Voter Registration Act of 1993.''.

SEC. 1607. USE OF CERTAIN DEPARTMENT OF DEFENSE FACILITIES AS POLLING
PLACES.

(a) Use of Military Facilities.--Section 2670 of title 10,
United States Code, is amended by adding at the end the
following new subsection:
``(b) Use of Certain Facilities as Polling Places.--(1)
Notwithstanding chapter 29 of title 18 (including sections 592
and 593 of such title) or any other provision of law, the
Secretary of Defense or Secretary of a military department may
not (except as provided in paragraph (3)) prohibit the
designation or use of a qualifying facility under the
jurisdiction of the Secretary as an official polling place for
local, State, or Federal elections.
``(2) A Department of Defense facility is a qualifying
facility for purposes of this subsection if as of December 31,
2000--
``(A) the facility is designated as an official
polling place by a State or local election official; or
``(B) the facility has been used as such an
official polling place since January 1, 1996.
``(3) The limitation in paragraph (1) may be waived by the
Secretary of Defense or Secretary of the military department
concerned with respect to a particular Department of Defense
facility if the Secretary of Defense or Secretary concerned
determines that local security conditions require prohibition
of the designation or use of that facility as an official
polling place for any election.''.
(b) Conforming and Clerical Amendments.--(1) Such section
is further amended--
(A) by striking ``Under'' and inserting ``(a) Use
by Red Cross.--Under''; and
(B) by striking ``this section'' and inserting
``this subsection''.
(2) The heading of such section is amended to read as
follows:

``Sec. 2670. Military installations: use by American National Red
Cross; use as polling places''.

(3) The item relating to such section in the table of
sections at the beginning of chapter 159 of such title is
amended to read as follows:

``2670. Military installations: use by American National Red Cross; use
as polling places.''.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE; DEFINITION.

(a) Short Title.--This division may be cited as the
``Military Construction Authorization Act for Fiscal Year
2002''.
(b) Definition of Fiscal Year 2001 Defense Authorization
Act.--In this division, the term ``Spence Act'' means the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001, as enacted into law by Public Law 106-398 (114 Stat.
1654).

TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(1), the Secretary of the Army may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Army: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alabama........................ Anniston Army Depot.. $5,150,000
Fort Rucker.......... $18,200,000
Redstone Arsenal..... $9,900,000
Alaska......................... Fort Richardson...... $115,000,000
Fort Wainwright...... $27,200,000
Arizona........................ Fort Huachuca........ $6,100,000
Yuma Proving Ground.. $3,100,000
California..................... Defense Language $5,900,000
Institute.
Fort Irwin........... $23,000,000
Colorado....................... Fort Carson.......... $66,000,000
District of Columbia........... Fort McNair.......... $11,600,000
Georgia........................ Fort Benning......... $23,900,000
Fort Gillem.......... $34,600,000
Fort Gordon.......... $34,000,000
Fort Stewart/Hunter $39,800,000
Army Air Field......
Hawaii......................... Kahuku Windmill Site. $900,000
Navy Public Works $11,800,000
Center, Pearl Harbor
Pohakuloa Training $6,600,000
Facility............
Wheeler Army Air $50,000,000
Field.
Illinois....................... Rock Island Arsenal.. $3,500,000
Kansas......................... Fort Riley........... $10,900,000
Kentucky....................... Fort Campbell........ $88,900,000
Fort Knox............ $12,000,000
Louisiana...................... Fort Polk............ $21,200,000
Maryland....................... Aberdeen Proving $58,300,000
Ground.
Fort Meade........... $11,200,000
Missouri....................... Fort Leonard Wood.... $7,850,000
New Jersey..................... Fort Monmouth........ $20,000,000
Picatinny Arsenal.... $10,200,000
New Mexico..................... White Sands Missile $7,600,000
Range.
New York....................... Fort Drum............ $56,350,000
North Carolina................. Fort Bragg........... $21,300,000
Sunny Point Military $11,400,000
Ocean Terminal......
Oklahoma....................... Fort Sill............ $5,100,000
South Carolina................. Fort Jackson......... $65,650,000
Texas.......................... Corpus Christi Army $10,400,000
Depot.
Fort Sam Houston..... $2,250,000
Fort Bliss........... $5,000,000
Fort Hood............ $104,200,000
Virginia....................... Fort Belvoir......... $35,950,000
Fort Eustis.......... $34,650,000
Fort Lee............. $23,900,000
Washington..................... Fort Lewis........... $238,200,000
-----------------
Total:............. $1,358,750,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(2), the Secretary of the Army may acquire real property
and carry out military construction projects for the locations
outside the United States, and in the amounts, set forth in the
following table:

Army: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Germany........................ Area Support Group, $36,000,000
Bamberg...............
Area Support Group, $13,500,000
Darmstadt.............
Baumholder............. $9,000,000
Hanau.................. $7,200,000
Heidelberg............. $15,300,000
Mannheim............... $16,000,000
Wiesbaden Air Base..... $26,300,000
Japan.......................... Camp Schab............. $3,800,000
Korea.......................... Camp Carroll........... $16,593,000
Camp Casey............. $8,500,000
Camp Hovey............. $35,750,000
Camp Humphreys......... $14,500,000
Camp Jackson........... $6,100,000
Camp Stanley........... $28,000,000
Camp Yongsan........... $12,800,000
Kwajalein...................... Kwajalein Atoll........ $11,000,000
---------------
Total:............... $260,343,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(3), the Secretary of the Army may acquire real property
and carry out military construction projects for the
installation and location, and in the amount, set forth in the
following table:

Army: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation Amount
------------------------------------------------------------------------
Unspecified Worldwide........................... Classified $4,000
Location ,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2104(a)(6)(A), the Secretary of the Army may construct
or acquire family housing units (including land acquisition) at
the installations, for the purposes, and in the amounts set
forth in the following table:

Army: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Alaska.................................. Fort Wainwright............ 32 Units................... $12,000,000
Arizona................................. Fort Huachuca.............. 72 Units................... $10,800,000
Kansas.................................. Fort Leavenworth........... 80 Units................... $20,000,000
Texas................................... Fort Bliss................. 76 Units................... $13,600,000
Fort Sam Houston........... 80 Units................... $11,200,000
Korea................................... Camp Humphreys............. 54 Units................... $12,800,000
-------------
Total:................... $80,400,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(6)(A), the Secretary of the Army may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
family housing units in an amount not to exceed $11,592,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2104(a)(6)(A), the Secretary of the
Army may improve existing military family housing units in an
amount not to exceed $220,750,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
2001, for military construction, land acquisition, and military
family housing functions of the Department of the Army in the
total amount of $3,155,594,000, as follows:
(1) For military construction projects inside the
United States authorized by section 2101(a),
$1,127,750,000.
(2) For military construction projects outside the
United States authorized by section 2101(b),
$260,343,000.
(3) For a military construction project at an
unspecified worldwide location authorized by section
2101(c), $4,000,000.
(4) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $18,000,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $159,533,000.
(6) For military family housing functions:
(A) For construction and acquisition,
planning and design, and improvement of
military family housing and facilities,
$312,742,000.
(B) For support of military family housing
(including the functions described in section
2833 of title 10, United States Code),
$1,089,573,000.
(7) For the construction of a cadet development
center at the United States Military Academy, West
Point, New York, authorized by section 2101(a) of the
Military Construction Authorization Act for Fiscal Year
1999 (division B of Public Law 105-261; 112 Stat.
2182), $37,900,000.
(8) For the construction of phase 2C of a barracks
complex, Tagaytay Street, at Fort Bragg, North
Carolina, authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 825),
$17,500,000.
(9) For the construction of phase 1C of a barracks
complex, Wilson Street, at Schofield Barracks, Hawaii,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 825),
$23,000,000.
(10) For construction of phase 2 of a basic combat
training complex at Fort Leonard Wood, Missouri,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2001
(division B of the Spence Act; 114 Stat. 1654A-389), as
amended by section 2105 of this Act, $27,000,000.
(11) For the construction of phase 2 of a battle
simulation center at Fort Drum, New York, authorized by
section 2101(a) of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of
the Spence Act; 114 Stat. 1654A-389), as amended by
section 2105 of this Act, $9,000,000.
(12) For the construction of phase 1 of a barracks
complex, Butner Road, at Fort Bragg, North Carolina,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2001
(division B of the Spence Act; 114 Stat. 1654A-389),
$49,000,000.
(13) For the construction of phase 1 of a barracks
complex, Longstreet Road, at Fort Bragg, North
Carolina, authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2001
(division B of the Spence Act; 114 Stat. 1654A-389),
$27,000,000.
(14) For the construction of a multipurpose digital
training range at Fort Hood, Texas, authorized by
section 2101(a) of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of
the Spence Act; 114 Stat. 1654A-389), as amended by
section 2105 of this Act, $13,000,000.
(15) For the homeowners assistance program, as
authorized by section 2832(a) of title 10, United
States Code, $10,119,000, to remain available until
expended.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2101 of this Act may not exceed--
(1) the total amount authorized to be appropriated
under paragraphs (1), (2), and (3) of subsection (a);
(2) $52,000,000 (the balance of the amount
authorized under section 2201(a) for construction of a
barracks complex, D Street, at Fort Richardson,
Alaska);
(3) $41,000,000 (the balance of the amount
authorized under section 2201 (a) for construction of
phase 1 of a barracks complex, Nelson Boulevard, at
Fort Carson, Colorado);
(4) $36,000,000 (the balance of the amount
authorized under section 2201(a) for construction of
phase 1 of a basic combat training complex at Fort
Jackson, South Carolina); and
(5) $102,000,000 (the balance of the amount
authorized under section 2201(a) for construction of a
barracks complex, 17th & B Streets, at Fort Lewis,
Washington).
(c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (15) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $29,866,000, which
represents the combination of savings resulting from
adjustments to foreign currency exchange rates for military
construction, military family housing construction, and
military family housing support outside the United States and
savings resulting from favorable bids, reduced overhead
charges, and cancellations due to force structure changes.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2001 PROJECTS.

(a) Modification.--The table in section 2101(a) of the
Military Construction Authorization Act for Fiscal Year 2001
(division B of the Spence Act; 114 Stat. 1654A-389) is
amended--
(1) in the item relating to Fort Leonard Wood,
Missouri, by striking ``$65,400,000'' in the amount
column and inserting ``$69,800,000'';
(2) in the item relating to Fort Drum, New York, by
striking ``$18,000,000'' in the amount column and
inserting ``$21,000,000'';
(3) in the item relating to Fort Hood, Texas, by
striking ``$36,492,000'' in the amount column and
inserting ``$39,492,000''; and
(4) by striking the amount identified as the total
in the amount column and inserting ``$626,374,000''.
(b) Conforming Amendments.--Section 2104 of that Act (114
Stat. 1654A-391) is amended--
(1) in subsection (a), in the matter preceding
paragraph (1), by striking ``$1,925,344,000'' and
inserting ``$1,935,744,000''; and
(2) in subsection (b)--
(A) in paragraph (2), by striking
``$22,600,000'' and inserting ``$27,000,000'';
(B) in paragraph (3), by striking
``$10,000,000'' and inserting ``$13,000,000'';
and
(C) in paragraph (6), by striking
``$6,000,000'' and inserting ``$9,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2000 PROJECTS.

Section 2104 of the Military Construction Authorization Act
for Fiscal Year 2000 (division B of Public Law 106-65; 113
Stat. 826), as amended by section 2105(c) of the Spence Act;
114 Stat. 1654A-393), is amended --
(1) in subsection (a)--
(A) in the matter preceding paragraph (1),
by striking ``$2,358,331,000'' and inserting
``$2,321,931,000''; and
(B) in paragraph (1), by striking
``$930,058,000'' and inserting
``$893,658,000''; and
(2) in subsection (b)(7), by striking
``$102,500,000'' and inserting ``$138,900,000''.

TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(1), the Secretary of the Navy may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Navy: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Arizona........................ Marine Corps Air $22,570,000
Station, Yuma........
California..................... Marine Air-Ground Task $75,125,000
Force Training
Center, Twentynine
Palms................
Marine Corps Air $4,470,000
Station, Camp
Pendleton............
Marine Corps Base, $96,490,000
Camp Pendleton.......
Naval Air Facility, El $23,520,000
Centro...............
Naval Air Station, $10,010,000
Lemoore..............
Naval Air Warfare $30,200,000
Center, China Lake...
Naval Air Warfare $13,730,000
Center, Point Mugu,
San Nicholas Island..
Naval Amphibious Base, $8,610,000
Coronado.............
Naval Construction $12,400,000
Battalion Center,
Port Hueneme.........
Naval Construction $3,780,000
Training Center, Port
Hueneme..............
Naval Station, San $47,240,000
Diego.
District of Columbia........... Naval Air Facility, $9,810,000
Washington...........
Florida........................ Naval Air Station, Key $11,400,000
West.
Naval Air Station, $2,140,000
Whiting Field, Milton
Naval Station, Mayport $16,420,000
Naval Station, $3,700,000
Pensacola.
Hawaii......................... Marine Corps Base, $24,920,000
Kaneohe..............
Naval Magazine $6,000,000
Lualualei.
Naval Shipyard, Pearl $20,000,000
Harbor.
Naval Station, Pearl $54,700,000
Harbor.
Navy Public Works $16,900,000
Center, Pearl Harbor.
Illinois....................... Naval Training Center, $82,260,000
Great Lakes..........
Indiana........................ Naval Surface Warfare $14,930,000
Center, Crane........
Maine.......................... Naval Air Station, $67,395,000
Brunswick.
Naval Shipyard, $14,620,000
Portsmouth...........
Maryland....................... Naval Air Warfare $2,260,000
Center, Patuxent
River................
Naval Air Warfare $5,100,000
Center, St. Inigoes..
Naval Explosive $1,250,000
Ordinance Disposal
Technology Center,
Indian Head..........
Mississippi.................... Naval Air Station, $3,370,000
Meridian.
Naval Construction $21,660,000
Battalion Center,
Gulfport.............
Naval Station, $4,680,000
Pascaguola...........
Missouri....................... Marine Corps Support $9,010,000
Activity, Kansas City
Nevada......................... Naval Air Station, $6,150,000
Fallon...............
New Jersey..................... Naval Weapons Station, $4,370,000
Earle................
North Carolina................. Marine Corps Air $4,050,000
Station, New River...
Marine Corps Base, $67,070,000
Camp Lejeune.........
Pennsylvania................... Naval Foundry and $14,800,000
Propeller Center,
Philadelphia.........
Rhode Island................... Naval Station, Newport $15,290,000
Naval Underwater $9,370,000
Warfare Center,
Newport..............
South Carolina................. Marine Corps Air $8,020,000
Station, Beaufort....
Marine Corps Recruit $5,430,000
Depot, Parris Island.
Tennessee...................... Naval Support $3,900,000
Activity, Millington.
Virginia....................... Marine Corps Air $3,790,000
Facility, Quantico...
Marine Corps Combat $9,390,000
Dev Com..............
Naval Amphibious Base, $9,090,000
Little Creek.........
Naval Station, Norfolk $139,270,000
Washington..................... Naval Air Station, $7,370,000
Whidbey Island.......
Naval Station, Everett $6,820,000
Strategic Weapons $3,900,000
Facility, Bangor.....
----------------
Total:.............. $1,058,750,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(2), the Secretary of the Navy may acquire real property
and carry out military construction projects for the locations
outside the United States, and in the amounts, set forth in the
following table:

Navy: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Greece......................... Naval Support Activity $12,240,000
Joint Headquarters
Command, Larissa......
Naval Support Activity, $3,210,000
Souda Bay.............
Guam........................... Naval Station, Guam.... $9,300,000
Navy Public Works $14,800,000
Center, Guam.
Iceland........................ Naval Air Station, $2,820,000
Keflavik.
Italy.......................... Naval Air Station, $3,060,000
Sigonella.
Spain.......................... Naval Station, Rota.... $2,240,000
---------------
Total:............... $47,670,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2204(a)(5)(A), the Secretary of the Navy may construct
or acquire family housing units (including land acquisition) at
the installations, for the purposes, and in the amounts set
forth in the following table:

Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
State Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................ Marine Corps Air Station, 51 Units.................. $9,017,000
Yuma......................
California............................. Marine Air-Ground Task 74 Units.................. $16,250,000
Force Training Center,
Twentynine Palms..........
Hawaii................................. Marine Corps Base, Kaneohe. 172 Units................. $46,996,000
Naval Station, Pearl Harbor 70 Units.................. $16,827,000
Mississippi............................ Naval Construction 160 Units................. $23,354,000
Battalion Center, Gulfport
Virginia............................... Marine Corps Combat 60 Units.................. $7,000,000
Development Command,
Quantico..................
Italy.................................. Naval Air Station, 10 Units.................. $2,403,000
Sigonella.................
---------------
Total:.................. $121,847,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(5)(A), the Secretary of the Navy may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$6,499,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2204(a)(5)(A), the Secretary of the
Navy may improve existing military family housing units in an
amount not to exceed $203,434,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
2001, for military construction, land acquisition, and military
family housing functions of the Department of the Navy in the
total amount of $2,366,742,000, as follows:
(1) For military construction projects inside the
United States authorized by section 2201(a),
$1,005,410,000.
(2) For military construction projects outside the
United States authorized by section 2201(b),
$47,670,000.
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $10,546,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $39,557,000.
(5) For military family housing functions:
(A) For construction and acquisition,
planning and design, and improvement of
military family housing and facilities,
$331,780,000.
(B) For support of military housing
(including functions described in section 2833
of title 10, United States Code), $910,095,000.
(6) For construction of phase 6 of a large anachoic
chamber facility at the Patuxent River Naval Air
Warfare Center, Maryland, authorized by section 2201(a)
of the Military Construction Authorization Act for
Fiscal Year 1993 (division B of Public Law 102-484; 106
Stat. 2590), $10,770,000.
(7) For construction of the Commander-in-Chief
Headquarters, Pacific Command, Camp H.M. Smith, Hawaii,
authorized by section 2201(a) of the Military
Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 828), as
amended by section 2206 of this Act, $37,580,000.
(8) For repair of a pier at Naval Station, San
Diego, California, authorized by section 2201(a) of the
Military Construction Authorization Act for Fiscal Year
2001 (division B of the Spence Act; 114 Stat. 1654A-
396), $17,500,000.
(9) For replacement of a pier at Naval Station,
Bremerton, Washington, formerly Naval Shipyard,
Bremerton, Puget Sound, Washington, authorized by
section 2201(a) of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of
the Spence Act; 114 Stat. 1654A-396), as amended by
section 2205 of this Act, $24,460,000.
(10) For construction of an industrial skills
center at Puget Sound Naval Shipyard, Bremerton,
Washington, formerly Naval Shipyard, Bremerton, Puget
Sound, Washington, authorized by section 2201(a) of the
Military Construction Authorization Act for Fiscal Year
2001 (division B of the Spence Act; 114 Stat. 1654A-
396), as amended by section 2205 of this Act,
$14,000,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2201 of this Act may not exceed--
(1) the total amount authorized to be appropriated
under paragraphs (1) and (2) of subsection (a);
(2) $33,240,000 (the balance of the amount
authorized under section 2201(a) for replacement of a
pier, increment I, at Naval Station, Norfolk,
Virginia); and
(3) $20,100,000 (the balance of the amount
authorized under section 2201(a) for a combined
propulsion and explosives lab at Naval Air Warfare
Center, China Lake, California).
(c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (10) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $82,626,000, which
represents the combination of savings resulting from
adjustments to foreign currency exchange rates for military
construction, military family housing construction, and
military family housing support outside the United States and
savings resulting from favorable bids, reduced overhead
charges, and cancellations due to force structure changes.

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2001 PROJECTS.

(a) Authorized Construction and Land Acquisition.--The
table in section 2201(a) of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of the
Spence Act; 114 Stat. 1654A-395) is amended--
(1) in the item relating to Naval Shipyard,
Bremerton, Puget Sound, Washington, by striking
``$100,740,000'' in the amount column and inserting
``$102,460,000'';
(2) in the item relating to Naval Station,
Bremerton, Washington, by striking ``$11,930,000'' in
the amount column and inserting ``$1,930,000''; and
(3) by striking the amount identified as the total
in the amount column and inserting ``$803,217,000''.
(b) Planning and Design.--Section 2204(a) of that Act (114
Stat. 1654A-398) is amended--
(1) in the matter preceding paragraph (1), by
striking ``$2,227,995,000'' and inserting
``$2,208,407,000''; and
(2) in paragraph (4), by striking ``$73,335,000''
and inserting ``$53,747,000''.
(c) Conforming Amendment.--Section 2204(b)(4) of that Act
(114 Stat. 1654A-398) is amended by striking ``$10,280,000''
and inserting ``$14,000,000''.

SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2000 PROJECT.

(a) Modification.--The table in section 2201(a) of the
Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 828) is amended--
(1) in the item relating to Camp H.M. Smith,
Hawaii, by striking ``$86,050,000'' in the amount
column and inserting ``$89,050,000''; and
(2) by striking the amount identified as the total
in the amount column and inserting ``$820,230,000''.
(b) Conforming Amendment.--Section 2204(b)(3) of that Act
(113 Stat. 831) is amended by striking ``$70,180,000'' and
inserting ``$73,180,000''.

TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(1), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Air Force: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alabama........................ Maxwell Air Force Base. $34,400,000
Alaska......................... Eareckson Air Force $4,600,000
Base.
Elmendorf Air Force $32,200,000
Base.
Arizona........................ Davis-Monthan Air Force $23,500,000
Base..................
Luke Air Force Base.... $4,500,000
Arkansas....................... Little Rock Air Force $18,100,000
Base..................
California..................... Beale Air Force Base... $7,900,000
Edwards Air Force Base. $16,300,000
Los Angeles Air Force $23,000,000
Base.
Travis Air Force Base.. $10,100,000
Vandenberg Air Force $11,800,000
Base.
Colorado....................... Buckley Air Force Base. $23,200,000
Schriever Air Force $30,400,000
Base.
United States Air Force $25,500,000
Academy...............
Delaware....................... Dover Air Force Base... $7,300,000
District of Columbia........... Bolling Air Force Base. $2,900,000
Florida........................ Cape Canaveral Air $7,800,000
Force Station.........
Eglin Air Force Base... $11,400,000
Hurlburt Field......... $10,400,000
Tyndall Air Force Base. $20,350,000
Georgia........................ Moody Air Force Base... $8,600,000
Robins Air Force Base.. $14,650,000
Idaho.......................... Mountain Home Air Force $14,600,000
Base..................
Kansas......................... McConnell Air Force $5,100,000
Base.
Louisiana...................... Barksdale Air Force $5,000,000
Base.
Maryland....................... Andrews Air Force Base. $19,420,000
Massachusetts.................. Hanscom Air Force Base. $9,400,000
Mississippi.................... Columbus Air Force Base $5,000,000
Keesler Air Force Base. $28,600,000
Montana........................ Malmstrom Air Force $4,650,000
Base.
Nevada......................... Nellis Air Force Base.. $31,600,000
New Jersey..................... McGuire Air Force Base. $36,550,000
New Mexico..................... Cannon Air Force Base.. $9,400,000
Kirtland Air Force Base $19,800,000
North Carolina................. Pope Air Force Base.... $17,800,000
North Dakota................... Grand Forks Air Force $7,800,000
Base.
Ohio........................... Wright-Patterson Air $28,250,000
Force Base............
Oklahoma....................... Altus Air Force Base... $20,200,000
Tinker Air Force Base.. $21,400,000
South Carolina................. Shaw Air Force Base.... $5,800,000
South Dakota................... Ellsworth Air Force $12,200,000
Base.
Tennessee...................... Arnold Air Force Base.. $24,400,000
Texas.......................... Dyess Air Force Base... $16,800,000
Lackland Air Force Base $12,800,000
Laughlin Air Force Base $15,600,000
Sheppard Air Force Base $45,200,000
Utah........................... Hill Air Force Base.... $44,000,000
Virginia....................... Langley Air Force Base. $47,300,000
Washington..................... Fairchild Air Force $2,800,000
Base.
McChord Air Force Base. $20,700,000
Wyoming........................ F. E. Warren Air Force $10,200,000
Base.
---------------
Total:............... $891,270,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(2), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

Air Force: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Germany........................ Ramstein Air Force Base $42,900,000
Spangdahlem Air Base... $8,700,000
Guam........................... Andersen Air Force Base $10,150,000
Italy.......................... Aviano Air Base........ $11,800,000
Korea.......................... Kunsan Air Base........ $12,000,000
Osan Air Base.......... $101,142,000
Oman........................... Masirah................ $8,000,000
Turkey......................... Eskisehir.............. $4,000,000
Incirlik............... $5,500,000
United Kingdom................. Royal Air Force, $11,300,000
Lakenheath.
Royal Air Force, $22,400,000
Mildenhall.
Wake Island.................... Wake Island............ $25,000,000
---------------
Total:............... $262,892,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using the amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(3), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installation and location, and in the amount, set forth in the
following table:

Air Force: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation Amount
------------------------------------------------------------------------
Unspecified Worldwide.......... Classified Location.... $4,458,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2304(a)(6)(A), the Secretary of the Air Force may
construct or acquire family housing units (including land
acquisition) at the installations, for the purposes, and in the
amounts set forth in the following table:

Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
State Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................ Luke Air Force Base........ 120 Units................. $15,712,000
California............................. Travis Air Force Base...... 118 Units................. $18,150,000
Colorado............................... Buckley Air Force Base..... 55 Units.................. $11,400,000
Delaware............................... Dover Air Force Base....... 120 Units................. $18,145,000
District of Columbia................... Bolling Air Force Base..... 136 Units................. $16,926,000
Hawaii................................. Hickam Air Force Base...... 102 Units................. $25,037,000
Idaho.................................. Mountain Home Air Force 56 Units.................. $10,000,000
Base......................
Louisiana.............................. Barksdale Air Force Base... 56 Units.................. $7,300,000
South Dakota........................... Ellsworth Air Force Base... 78 Units.................. $13,700,000
Virginia............................... Langley Air Force Base..... 4 Units................... $1,200,000
Portugal............................... Lajes Field, Azores........ 64 Units.................. $13,230,000
---------------
Total:.................. $150,800,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(6)(A), the Secretary of the Air Force may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$24,558,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2304(a)(6)(A), the Secretary of the
Air Force may improve existing military family housing units in
an amount not to exceed $375,345,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2001 PROJECTS.

(a) McGuire Air Force Base.--The table in section 2301(a)
of the Military Construction Authorization Act for Fiscal Year
2001 (division B of the Spence Act; 114 Stat. 1654A-399) is
amended--
(1) in the item relating to McGuire Air Force Base,
New Jersey, by striking ``$29,772,000'' in the amount
column and inserting ``$32,972,000''; and
(2) by striking the amount identified as the total
in the amount column and inserting ``$748,955,000''.
(b) Mountain Home Air Force Base.--The table in section
2302(a) of that Act (114 Stat. 1654A-400) is amended in the
item relating to Mountain Home Air Force Base, Idaho, by
striking ``119 Units'' in the purpose column and inserting ``46
Units''.
(c) Conforming Amendment.--Section 2304(b)(2) of that Act
(114 Stat. 1654A-402) is amended by striking ``$9,400,000'' and
inserting ``$12,600,000''.

TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Cancellation of authority to carry out certain fiscal year
2001 projects.
Sec. 2405. Modification of authority to carry out certain fiscal year
2000 projects.
Sec. 2406. Modification of authority to carry out certain fiscal year
1999 projects.
Sec. 2407. Modification of authority to carry out certain fiscal year
1995 projects.
Sec. 2408. Prohibition on expenditures to develop forward operating
location on Aruba.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2403(a)(1), the Secretary of Defense may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Defense Agencies: Inside the United States
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Defense Education Activity..... Laurel Bay, South $12,850,000
Carolina..............
Marine Corps Base, Camp $8,857,000
LeJeune, North
Carolina..............
Defense Logistics Agency....... Defense Distribution $30,000,000
Depot, Tracy,
California............
Defense Distribution, $19,900,000
New Cumberland,
Pennsylvania..........
Eielson Air Force Base, $8,800,000
Alaska................
Fort Belvoir, Virginia. $900,000
Grand Forks Air Force $9,110,000
Base, North Dakota....
Hickam Air Force Base, $29,200,000
Hawaii................
McGuire Air Force Base, $4,400,000
New Jersey............
Minot Air Force Base, $14,000,000
North Dakota..........
Philadelphia, $2,429,000
Pennsylvania..........
Pope Air Force Base, $3,400,000
North Carolina........
Special Operations Command..... Aberdeen Proving $3,200,000
Ground, Maryland......
CONUS Classified....... $2,400,000
Fort Benning, Georgia.. $5,100,000
Fort Bragg, North $33,562,000
Carolina..............
Fort Lewis, Washington. $6,900,000
Hurlburt Field, Florida $13,400,000
MacDill Air Force Base, $12,000,000
Florida...............
Naval Station, San $13,650,000
Diego, California.....
TRICARE Management Activity.... Andrews Air Force Base, $10,250,000
Maryland..............
Dyess Air Force Base, $3,300,000
Texas.................
F.E. Warren Air Force $2,700,000
Base, Wyoming.........
Fort Hood, Texas....... $12,200,000
Fort Stewart/Hunter $11,000,000
Army Air Field,
Georgia...............
Holloman Air Force $5,700,000
Base, New Mexico......
Hurlburt Field, Florida $8,800,000
Marine Corps Base, Camp $15,300,000
Pendleton, California.
Marine Corps Logistics $5,800,000
Base, Albany, Georgia.
Naval Air Station, $6,600,000
Whidbey Island,
Washington............
Naval Hospital, $1,600,000
Twentynine Palms,
California............
Naval Station, Mayport, $24,000,000
Florida...............
Naval Station, Norfolk, $21,000,000
Virginia..............
Schriever Air Force $4,000,000
Base, Colorado........
Washington Headquarters Pentagon Reservation, $25,000,000
Services...................... Virginia..............
---------------
Total:............... $391,308,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2403(a)(2), the Secretary of Defense may acquire real property
and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

Defense Agencies: Outside the United States
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Defense Education Activity..... Aviano Air Base, Italy. $3,647,000
Geilenkirchen AB, $1,733,000
Germany...............
Heidelberg, Germany.... $3,312,000
Kaiserslautern, Germany $1,439,000
Kitzingen, Germany..... $1,394,000
Landstuhl, Germany..... $1,444,000
Ramstein Air Force $2,814,000
Base, Germany.........
Royal Air Force, $22,132,000
Feltwell, United
Kingdom...............
Vogelweh Annex, Germany $1,558,000
Wiesbaden Air Base, $1,378,000
Germany...............
Wuerzburg, Germany..... $2,684,000
Defense Logistics Agency....... Anderson Air Force $20,000,000
Base, Guam............
Camp Casey, Korea...... $5,500,000
Naval Station, Rota, $3,000,000
Spain.................
Yokota Air Base, Japan. $13,000,000
Office Secretary of Defense.... Comalapa Air Base, El $12,577,000
Salvador..............
TRICARE Management Activity.... Heidelberg, Germany.... $28,000,000
Lajes Field, Azores, $3,750,000
Portugal..............
Thule, Greenland....... $10,800,000
---------------
Total:............... $140,162,000
------------------------------------------------------------------------

SEC. 2402. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2403(a)(6), the Secretary of Defense
may carry out energy conservation projects under section 2865
of title 10, United States Code, in the amount of $27,100,000.

SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
2001, for military construction, land acquisition, and military
family housing functions of the Department of Defense (other
than the military departments), in the total amount of
$1,481,208,000, as follows:
(1) For military construction projects inside the
United States authorized by section 2401(a),
$391,308,000.
(2) For military construction projects outside the
United States authorized by section 2401(b),
$140,162,000.
(3) For unspecified minor construction projects
under section 2805 of title 10, United States Code,
$24,492,000.
(4) For contingency construction projects of the
Secretary of Defense under section 2804 of title 10,
United States Code, $10,000,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $54,496,000.
(6) For energy conservation projects authorized by
section 2402, $27,100,000.
(7) For base closure and realignment activities as
authorized by the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-
510; 10 U.S.C. 2687 note), $632,713,000.
(8) For military family housing functions:
(A) For improvement of military family
housing and facilities, $250,000.
(B) For support of military family housing
(including functions described in section 2833
of title 10, United States Code), $43,762,000,
of which not more than $37,298,000 may be
obligated or expended for the leasing of
military family housing units worldwide.
(C) For credit to the Department of Defense
Family Housing Improvement Fund established by
section 2883(a)(1) of title 10, United States
Code, $2,000,000.
(9) For the construction of phase 6 of an
ammunition demilitarization facility at Pine Bluff
Arsenal, Arkansas, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Year
1995 (division B of Public Law 103-337; 108 Stat.
3040), as amended by section 2407 of the Military
Construction Authorization Act for Fiscal Year 1996
(division B of Public Law 104-106; 110 Stat. 539),
section 2408 of the Military Construction Authorization
Act for Fiscal Year 1998 (division B of Public Law 105-
85; 111 Stat. 1982), section 2406 of the Military
Construction Authorization Act for Fiscal Year 1999
(division B of Public Law 105-261; 112 Stat. 2197), and
section 2407 of this Act, $26,000,000.
(10) For the construction of phase 3 of an
ammunition demilitarization facility at Pueblo Army
Depot, Colorado, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104-201; 110 Stat.
2775), as amended by section 2406 of the Military
Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 839),
$11,000,000.
(11) For construction of phase 4 of an ammunition
demilitarization facility at Newport Army Depot,
Indiana, authorized by section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1999
(division B of Public Law 105-261; 112 Stat. 2193),
$66,000,000.
(12) For construction of phase 4 of an ammunition
demilitarization facility at Aberdeen Proving Ground,
Maryland, authorized by section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1999
(division B of Public Law 105-261; 112 Stat. 2193), as
amended by section 2406 of this Act, $66,500,000.
(13) For the construction of phase 2 of an
ammunition demilitarization facility at Blue Grass Army
Depot, Kentucky, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Year
2000 (division B of Public Law 106-65, 113 Stat. 836),
as amended by section 2405 of this Act, $3,000,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2401 of this Act may not exceed the total amount
authorized to be appropriated under paragraphs (1) and (2) of
subsection (a).
(c) Adjustments.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (13) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $17,575,000, which
represents the combination of savings resulting from
adjustments to foreign currency exchange rates for military
construction, military family housing construction, and
military family housing support outside the United States and
savings resulting from favorable bids, reduced overhead
charges, and cancellations due to force structure changes.

SEC. 2404. CANCELLATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2001 PROJECTS.

(a) Cancellation of Projects at Camp Pendleton,
California.--The table in section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 2001 (division B
of the Spence Act; 114 Stat. 1654A-402) is amended--
(1) under the agency heading TRICARE Management
Activity, by striking the item relating to Marine Corps
Base, Camp Pendleton, California; and
(2) by striking the amount identified as the total
in the amount column and inserting ``$242,756,000''.
(b) Cancellation of Projects at Unspecified Worldwide
Locations.--Section 2401(c) of that Act (114 Stat. 1654A-404)
is amended by striking ``$451,135,000'' and inserting
``$30,065,000''.
(c) Treatment of Authorization of Appropriations for
Certain Canceled Projects.--Of the amount authorized to be
appropriated by section 2403(a) of that Act (114 Stat. 1654A-
404), and paragraph (1) of that section, $14,150,000 shall be
available for purposes relating to construction of the
Portsmouth Naval Hospital, Virginia, as authorized by section
2401(a) of the Military Construction Authorization Act for
Fiscal Years 1990 and 1991 (division B of Public Law 101-189;
103 Stat. 1640).
(d) Reduction in Authorization of Appropriations for
Projects at Unspecified Worldwide Locations.--Section 2403 of
that Act (114 Stat. 1654A-404) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1),
by striking ``$1,883,902,000'' and inserting
``$1,828,872,000''; and
(B) in paragraph (3), by striking
``$85,095,000'' and inserting ``$30,065,000'';
and
(2) in subsection (b), by striking ``may not
exceed--'' and all that follows through the end of the
subsection and inserting ``may not exceed the total
amount authorized to be appropriated under paragraphs
(1) and (2) of subsection (a).''.

SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2000 PROJECTS.

(a) Modification.--The table in section 2401(a) of the
Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 835) is amended--
(1) under the agency heading relating to Chemical
Demilitarization, in the item relating to Blue Grass
Army Depot, Kentucky, by striking ``$206,800,000'' in
the amount column and inserting ``$254,030,000'';
(2) under the agency heading relating to TRICARE
Management Agency--
(A) in the item relating to Fort
Wainwright, Alaska, by striking
``$133,000,000'' in the amount column and
inserting ``$215,000,000''; and
(B) by striking the item relating to Naval
Air Station, Whidbey Island, Washington; and
(3) by striking the amount identified as the total
in the amount column and inserting ``$711,950,000''.
(b) Treatment of Authorization of Appropriations for
Canceled Whidbey Island, Project.--Of the amount authorized to
be appropriated by section 2405(a) of that Act (113 Stat. 837),
and paragraph (1) of that section, $4,700,000 shall be
available for purposes relating to construction of the
Portsmouth Naval Hospital, Virginia, as authorized by section
2401(a) of the Military Construction Authorization Act for
Fiscal Years 1990 and 1991 (division B of Public Law 101-189;
103 Stat. 1640).
(c) Conforming Amendments.--Section 2405(b) of that Act
(113 Stat. 839) is amended--
(1) in paragraph (2), by striking ``$115,000,000''
and inserting ``$197,000,000''; and
(2) in paragraph (3), by striking ``$184,000,000''
and inserting ``$231,230,000''.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
1999 PROJECT.

(a) Modification.--The table in section 2401(a) of the
Military Construction Authorization Act for Fiscal Year 1999
(division B of Public Law 105-261; 112 Stat. 2193) is amended--
(1) under the agency heading relating to Chemical
Demilitarization, in the item relating to Aberdeen
Proving Ground, Maryland, by striking ``$186,350,000''
in the amount column and inserting ``$223,950,000'';
and
(2) by striking the amount identified as the total
in the amount column and inserting ``$727,616,000''.
(b) Conforming Amendment.--Section 2404(b)(3) of that Act
(112 Stat. 2196) is amended by striking ``$158,000,000'' and
inserting ``$195,600,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
1995 PROJECT.

The table in section 2401 of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public
Law 103-337; 108 Stat. 3040), as amended by section 2407 of the
Military Construction Authorization Act for Fiscal Year 1996
(division B of Public Law 104-106; 110 Stat. 539), section 2408
of the Military Construction Authorization Act for Fiscal Year
1998 (division B of Public Law 105-85; 111 Stat. 1982), and
section 2406 of the Military Construction Authorization Act for
Fiscal Year 1999 (division B of Public Law 105-261; 112 Stat.
2197), is amended under the agency heading relating to Chemical
Agents and Munitions Destruction, in the item relating to Pine
Bluff Arsenal, Arkansas, by striking ``$154,400,000'' in the
amount column and inserting ``$177,400,000''.

SEC. 2408. PROHIBITION ON EXPENDITURES TO DEVELOP FORWARD OPERATING
LOCATION ON ARUBA.

None of the funds appropriated under the heading ``military
construction, defense-wide'' in chapter 3 of title III of the
Emergency Supplemental Act, 2000 (Public Law 106-246; 114 Stat.
579), may be used by the Secretary of Defense to develop any
forward operating location on the island of Aruba.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

The Secretary of Defense may make contributions for the
North Atlantic Treaty Organization Security Investment Program
as provided in section 2806 of title 10, United States Code, in
an amount not to exceed the sum of the amount authorized to be
appropriated for this purpose in section 2502 and the amount
collected from the North Atlantic Treaty Organization as a
result of construction previously financed by the United
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

Funds are hereby authorized to be appropriated for fiscal
years beginning after September 30, 2001, for contributions by
the Secretary of Defense under section 2806 of title 10, United
States Code, for the share of the United States of the cost of
projects for the North Atlantic Treaty Organization Security
Investment Program authorized by section 2501, in the amount of
$162,600,000.

TITLE XXVI--GUARD AND RESERVE FACILITIES

Sec. 2601. Authorized guard and reserve construction and land
acquisition projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) In General.--There are authorized to be appropriated
for fiscal years beginning after September 30, 2001, for the
costs of acquisition, architectural and engineering services,
and construction of facilities for the Guard and Reserve
Forces, and for contributions therefor, under chapter 1803 of
title 10, United States Code (including the cost of acquisition
of land for those facilities), the following amounts:
(1) For the Department of the Army--
(A) for the Army National Guard of the
United States, $393,253,000; and
(B) for the Army Reserve, $168,969,000.
(2) For the Department of the Navy, for the Naval
and Marine Corps Reserve, $52,896,000.
(3) For the Department of the Air Force--
(A) for the Air National Guard of the
United States, $253,852,000; and
(B) for the Air Force Reserve, $73,032,000.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
SPECIFIED BY LAW.

(a) Expiration of Authorizations After Three Years.--Except
as provided in subsection (b), all authorizations contained in
titles XXI through XXVI for military construction projects,
land acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor) shall expire on the later of--
(1) October 1, 2004; or
(2) the date of the enactment of an Act authorizing
funds for military construction for fiscal year 2005.
(b) Exception.--Subsection (a) shall not apply to
authorizations for military construction projects, land
acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor) for which appropriated funds have been
obligated before the later of--
(1) October 1, 2004; or
(2) the date of the enactment of an Act authorizing
funds for fiscal year 2005 for military construction
projects, land acquisition, family housing projects and
facilities, or contributions to the North Atlantic
Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999
PROJECTS.

(a) Extension.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1999
(division B of Public Law 105-261; 112 Stat. 2199),
authorizations set forth in the tables in subsection (b), as
provided in section 2302 or 2601 of that Act, shall remain in
effect until October 1, 2002, or the date of the enactment of
an Act authorizing funds for military construction for fiscal
year 2003, whichever is later.
(b) Tables.--The tables referred to in subsection (a) are
as follows:

Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Delaware.............................. Dover Air Force Base..... Replace Family Housing (55 $8,998,000
units)......................
Florida............................... Patrick Air Force Base... Replace Family Housing (46 $9,692,000
units)......................
New Mexico............................ Kirtland Air Force Base.. Replace Family Housing (37 $6,400,000
units)......................
Ohio.................................. Wright-Patterson Air Replace Family Housing (40 $5,600,000
Force Base.............. units)......................
----------------------------------------------------------------------------------------------------------------

Army National Guard: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Massachusetts......................... Westfield................ Army Aviation Support $9,274,000
Facility....................
South Carolina........................ Spartanburg.............. Readiness Center............. $5,260,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1998
PROJECTS.

(a) Extension.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1998
(division B of Public Law 105-85; 111 Stat. 1984),
authorizations set forth in the tables in subsection (b), as
provided in section 2102, 2202, or 2302 of that Act and
extended by section 2702 of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of the
Spence Act; 114 Stat. 1654A-408), shall remain in effect until
October 1, 2002, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
2003, whichever is later.
(b) Tables.--The tables referred to in subsection (a) are
as follows:

Army: Extension of 1998 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Maryland.............................. Fort Meade............... Family Housing Construction $7,900,000
(56 units)..................
----------------------------------------------------------------------------------------------------------------

Navy: Extension of 1998 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
California............................ Naval Complex, San Diego. Replace Family Housing (94 $13,500,000
units)......................
California............................ Marine Corps Air Station, Family Housing Construction $28,881,000
Miramar................. (166 units).................
Louisiana............................. Naval Complex, New Replace Family Housing (100 $11,930,000
Orleans................. units)......................
Texas................................. Naval Air Station, Corpus Family Housing Construction $22,250,000
Christi................. (212 units).................
----------------------------------------------------------------------------------------------------------------

Air Force: Extension of 1998 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
New Mexico............................ Kirtland Air Force Base.. Replace Family Housing (180 $20,900,000
units)......................
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take
effect on the later of--
(1) October 1, 2001; or
(2) the date of the enactment of this Act.

TITLE XXVIII--GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing
Changes

Subtitle B--Real Property and Facilities Administration

Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

Sec. 2821. Lease back of base closure property.

Subtitle D--Land Conveyances

Part I--Army Conveyances

Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm,
Anchorage, Alaska.
Sec. 2832. Lease authority, Fort DeRussy, Hawaii.
Sec. 2833. Modification of land exchange, Rock Island Arsenal, Illinois.
Sec. 2834. Land conveyance, Fort Des Moines, Iowa.
Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir,
Virginia.
Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.
Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.

Part II--Navy Conveyances

Part III--Air Force Conveyances

Subtitle E--Other Matters

Subtitle A--Military Construction Program and Military Family Housing
Changes

SEC. 2801. INCREASE IN THRESHOLDS FOR CERTAIN UNSPECIFIED MINOR
MILITARY CONSTRUCTION PROJECTS.

(a) Projects Requiring Advance Approval of Secretary
Concerned.--Subsection (b)(1) of section 2805 of title 10,
United States Code, is amended by striking ``$500,000'' and
inserting ``$750,000''.
(b) Projects Using Amounts for Operation and Maintenance.--
Subsection (c)(1) of that section is amended--
(1) in subparagraph (A), by striking ``$1,000,000''
and inserting ``$1,500,000''; and
(2) in subparagraph (B), by striking ``$500,000''
and inserting ``$750,000''.

SEC. 2802. EXCLUSION OF UNFORESEEN ENVIRONMENTAL HAZARD REMEDIATION
FROM LIMITATION ON AUTHORIZED COST VARIATIONS.

Subsection (d) of section 2853 of title 10, United States
Code, is amended to read as follows:
``(d) The limitation on cost increases in subsection (a)
does not apply to the following:
``(1) The settlement of a contractor claim under a
contract.
``(2) The costs associated with the required
remediation of an environmental hazard in connection
with a military construction project or military family
housing project, such as asbestos removal, radon
abatement, lead-based paint removal or abatement, or
any other legally required environmental hazard
remediation, if the required remediation could not have
reasonably been anticipated at the time the project was
approved originally by Congress.''.

SEC. 2803. REPEAL OF ANNUAL REPORTING REQUIREMENT ON MILITARY
CONSTRUCTION AND MILITARY FAMILY HOUSING
ACTIVITIES.

(a) Repeal.--Section 2861 of title 10, United States Code,
is repealed.
(b) Clerical Amendment.--The table of sections at the
beginning of subchapter III of chapter 169 of such title is
amended by striking the item relating to section 2861.

SEC. 2804. FUNDS FOR HOUSING ALLOWANCES OF MEMBERS ASSIGNED TO MILITARY
FAMILY HOUSING UNDER ALTERNATIVE AUTHORITY FOR
ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING.

(a) In General.--Subchapter IV of chapter 169 of title 10,
United States Code, is amended by inserting after section 2883
the following new section:

``Sec. 2883a. Funds for housing allowances of members of the armed
forces assigned to certain military family housing
units

``(a) Authority to Transfer Funds to Cover Housing
Allowances.--During the fiscal year in which a contract is
awarded for the acquisition or construction of military family
housing units under this subchapter that are not to be owned by
the United States, the Secretary of Defense may transfer the
amount determined under subsection (b) with respect to such
housing from appropriations available for support of military
housing for the armed force concerned for that fiscal year to
appropriations available for pay and allowances of military
personnel of that same armed force for that same fiscal year.
``(b) Amount Transferred.--The total amount authorized to
be transferred under subsection (a) in connection with a
contract under this subchapter may not exceed an amount equal
to any additional amounts payable during the fiscal year in
which the contract is awarded to members of the armed forces
assigned to the acquired or constructed housing units as basic
allowance for housing under section 403 of title 37 that would
not otherwise have been payable to such members if not for
assignment to such housing units.
``(c) Transfers Subject to Appropriations.--The transfer of
funds under the authority of subsection (a) is limited to such
amounts as may be provided in advance in appropriations
Acts.''.
(b) Clerical Amendment.--The table of sections at the
beginning of that subchapter is amended by inserting after the
item relating to section 2883 the following new item:

``2883a. Funds for housing allowances of members of the armed forces
assigned to certain military family housing units.''.

SEC. 2805. EXTENSION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND
IMPROVEMENT OF MILITARY HOUSING.

Section 2885 of title 10, United States Code, is amended by
striking ``2004'' and inserting ``2012''.

SEC. 2806. TREATMENT OF FINANCING COSTS AS ALLOWABLE EXPENSES UNDER
CONTRACTS FOR UTILITY SERVICES FROM UTILITY SYSTEMS
CONVEYED UNDER PRIVATIZATION INITIATIVE.

(a) Evaluation of Federal Acquisition Regulation.--The
Secretary of Defense shall conduct an evaluation of the Federal
Acquisition Regulation to determine whether or not it is
advisable to modify the Federal Acquisition Regulation to
provide that a contract for utility services from a utility
system conveyed under section 2688(a) of title 10, United
States Code, may include terms and conditions that recognize
financing costs, such as return on equity and interest on debt,
as an allowable expense when incurred by the conveyee of the
utility system to acquire, operate, renovate, replace, upgrade,
repair, or expand the utility system. The Secretary shall
complete the evaluation not later than 90 days after the date
of the enactment of this Act.
(b) Submission of Recommendation to Federal Acquisition
Regulatory Council.--If the Secretary determines under
subsection (a) that it is advisable to modify the Federal
Acquisition Regulation to provide that a contract described in
such subsection may include terms and conditions described in
such subsection, the Secretary shall submit the results of the
evaluation to the Federal Acquisition Regulatory Council
together with a recommendation regarding the amendments to the
Federal Acquisition Regulation necessary to effectuate the
modification.

Subtitle B--Real Property and Facilities Administration

SEC. 2811. USE OF MILITARY INSTALLATIONS FOR CERTAIN RECREATIONAL
ACTIVITIES.

(a) Waiver Authority.--Section 2671 of title 10, United
States Code, is amended--
(1) in subsection (b), by striking ``(b)'' and
inserting ``(e) Regulations.--'' and transferring the
subsection to the end of the section; and
(2) by inserting after subsection (a) the following
new subsection (b):
``(b) Waiver Authority.--(1) The Secretary of Defense may
waive or otherwise modify the fish and game laws of a State or
Territory otherwise applicable under subsection (a)(1) to
hunting, fishing, or trapping at a military installation or
facility if the Secretary determines that the application of
such laws to such hunting, fishing, or trapping without
modification could result in undesirable consequences for
public health or safety at the installation or facility. The
authority to waive such laws includes the authority to extend,
but not reduce, the specified season for certain hunting,
fishing, or trapping. The Secretary may not waive the
requirements under subsection (a)(2) regarding a license for
such hunting, fishing, or trapping or any fee imposed by a
State or Territory to obtain such a license.
``(2) If the Secretary determines that a waiver of fish and
game laws of a State or Territory is appropriate under
paragraph (1), the Secretary shall provide written notification
to the appropriate State or Territory officials stating the
reasons for, and extent of, the waiver. The notification shall
be provided at least 30 days before implementation of the
waiver.''.
(b) Clerical Amendments.--Such section is further amended--
(1) in subsection (a), by inserting ``General
Requirements for Hunting, Fishing, and Trapping.--''
after ``(a)'';
(2) in subsection (c), by inserting ``Violations.--
'' after ``(c)''; and
(3) in subsection (d), by inserting ``Relation to
Treaty Rights.--'' after ``(d)''.

SEC. 2812. AVAILABILITY OF PROCEEDS OF SALES OF DEPARTMENT OF DEFENSE
PROPERTY FROM CERTAIN CLOSED MILITARY
INSTALLATIONS.

(a) Modification of Availability Percentages.--Subsection
(h)(2) of section 204 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 485) is amended
by striking subparagraphs (A) and (B) and inserting the
following new subparagraphs:
``(A) In the case of property located at a military
installation that is closed, such amount shall be
available for facility maintenance and repair or
environmental restoration by the military department
that had jurisdiction over such property before the
closure of the military installation.
``(B) In the case of property located at any other
military installation--
``(i) 50 percent of such amount shall be
available for facility maintenance and repair
or environmental restoration at the military
installation where such property was located
before it was disposed of or transferred; and
``(ii) 50 percent of such amount shall be
available for facility maintenance and repair
and for environmental restoration by the
military department that had jurisdiction over
such property before it was disposed of or
transferred.''.
(b) Relation to Other Laws.--Subsection (h) of such section
is further amended--
(1) in paragraph (1), by inserting ``pursuant to a
base closure law'' after ``realignment'' in the first
sentence; and
(5) in paragraph (5), by inserting before the
period at the end the following: ``, and the term `base
closure law' shall have the meaning given that term in
section 2667(h)(2) of such title''.

SEC. 2813. PILOT PROGRAM TO PROVIDE ADDITIONAL TOOLS FOR EFFICIENT
OPERATION OF MILITARY INSTALLATIONS.

(a) Initiative Authorized.--The Secretary of Defense may
carry out a pilot program (to be known as the ``Pilot Efficient
Facilities Initiative'') for purposes of determining the
potential for increasing the efficiency and effectiveness of
the operation of military installations.
(b) Designation of Participating Military Installations.--
(1) The Secretary of Defense may designate up to two military
installations of each military department for participation in
the Initiative.
(2) Before designating a military installation under
paragraph (1), the Secretary shall consult with employees at
the installation and communities in the vicinity of the
installation regarding the Initiative.
(3) The Secretary shall transmit to Congress written
notification of the designation of a military installation to
participate in the Initiative not later than 30 days before
taking any action to carry out the Initiative at the
installation. The notification shall include a description of
the steps taken by the Secretary to comply with paragraph (2).
(c) Management Plan.--(1) As part of the notification
required under subsection (b), the Secretary of Defense shall
submit a management plan for the Initiative at the military
installation designated in the notification.
(2) The management plan for a designated military
installation shall include a description of--
(A) each proposed lease of real or personal
property located at the military installation;
(B) each proposed disposal of real or personal
property located at the installation;
(C) each proposed leaseback of real or personal
property leased or disposed of at the installation;
(D) each proposed conversion of services at the
installation from Federal Government performance to
non-Federal Government performance, including
performance by contract with a State or local
government or private entity or performance as
consideration for the lease or disposal of property at
the installation; and
(E) each other action proposed to be taken to
improve mission effectiveness and reduce the cost of
providing quality installation support at the
installation.
(3) With respect to each proposed action described under
paragraph (2), the management plan shall include--
(A) an estimate of the savings expected to be
achieved as a result of the action;
(B) each regulation not required by statute that is
proposed to be waived to implement the action; and
(C) each statute or regulation required by statute
that is proposed to be waived to implement the action,
including--
(i) an explanation of the reasons for the
proposed waiver; and
(ii) a description of the action to be
taken to protect the public interests served by
the statute or regulation, as the case may be,
in the event of the waiver.
(4) The management plan shall include measurable criteria
for the evaluation of the effects of the actions taken pursuant
to the Initiative at the designated military installation.
(d) Waiver of Statutory Requirements.--The Secretary of
Defense may waive any statute, or regulation required by
statute, for purposes of carrying out the Initiative only if
specific authority for the waiver of such statute or regulation
is provided in a law that is enacted after the date of the
enactment of this Act.
(e) Installation Efficiency Initiative Fund.--(1) There is
established on the books of the Treasury a fund to be known as
the ``Installation Efficiency Initiative Fund''.
(2) There shall be deposited in the Fund all cash rents,
payments, reimbursements, proceeds, and other amounts from
leases, sales, or other conveyances or transfers, joint
activities, and other actions taken under the Initiative.
(3) To the extent provided in advance in authorization Acts
and appropriations Acts, amounts in the Fund shall be available
to the Secretary of Defense for purposes of managing capital
assets and providing support services at military installations
participating in the Initiative. Amounts in the Fund may be
used for such purposes in addition to, or in combination with,
other amounts authorized to appropriated for such purposes.
Amounts in the Fund shall be available for such purposes for
five years.
(4) Subject to applicable financial management regulations,
the Secretary shall structure the Fund, and provide
administrative policies and procedures, in order provide proper
control of deposits in and disbursements from the Fund.
(f) Report.--Not later than December 31, 2004, the
Secretary of Defense shall submit to Congress a report on the
Initiative. The report shall contain a description of the
actions taken under the Initiative and include such other
information, including recommendations, as the Secretary
considers appropriate regarding the Initiative.
(g) Definitions.--In this section:
(1) The term ``Initiative'' means the Pilot
Efficient Facilities Initiative.
(2) The term ``Fund'' means the Installation
Efficiency Initiative Fund.
(3) The term ``military installation'' has the
meaning given such term in section 2687(e) of title 10,
United States Code.
(h) Termination.--The authority of the Secretary of Defense
to carry out the Initiative shall terminate December 31, 2005.

SEC. 2814. DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM FACILITY
MAINTENANCE COSTS.

(a) Authority To Carry Out Program.--The Secretary of the
Army may conduct a demonstration program to assess the
feasibility and desirability of including facility maintenance
requirements in construction contracts for military
construction projects for the purpose of determining whether
such requirements facilitate reductions in the long-term
facility maintenance costs of the military departments.
(b) Contracts.--Not more than three contracts entered into
in any year may contain requirements referred to in subsection
(a) for the purpose of the demonstration program. The
demonstration program may only cover contracts entered into on
or after the date of the enactment of this Act.
(c) Effective Period of Requirements.--The effective period
of a requirement referred to in subsection (a) that is included
in a contract for the purpose of the demonstration program may
not exceed five years.
(d) Reporting Requirements.--Not later than January 31,
2005, the Secretary of the Army shall submit to Congress a
report on the demonstration program, including the following:
(1) A description of all contracts that contain
requirements referred to in subsection (a) for the
purpose of the demonstration program.
(2) An evaluation of the demonstration program and
a description of the experience of the Secretary with
respect to such contracts.
(3) Any recommendations, including recommendations
for the termination, continuation, or expansion of the
demonstration program, that the Secretary considers
appropriate.
(e) Expiration.--The authority under subsection (a) to
include requirements referred to in that subsection in
contracts under the demonstration program shall expire on
September 30, 2006.
(f) Funding.--Amounts authorized to be appropriated for the
Army for a fiscal year for military construction shall be
available for the demonstration program under this section in
such fiscal year.

SEC. 2815. BASE EFFICIENCY PROJECT AT BROOKS AIR FORCE BASE, TEXAS.

(a) Administration of Project.--Section 136(m)(9) of the
Military Construction Appropriations Act, 2001 (division A of
Public Law 106-246; 114 Stat. 524), is amended by striking ``,
who shall be a civilian official of the Department appointed by
the President with the advice and consent of the Senate''.
(b) Indemnification of Transferees.--Not later than March
1, 2002, the Secretary of Defense shall submit to Congress a
report evaluating the base efficiency project conducted under
section 136 of the Military Construction Appropriations Act,
2001 (division A of Public Law 106-246; 114 Stat. 520). The
evaluation shall address whether the disposal of real property
under subsection (e) or other provisions of that section
requires any additional authority for the Secretary beyond the
authority provided under existing law to hold harmless, defend,
and indemnify the recipients of the property against claims
arising out of Department of Defense activities on the property
before disposal. If the Secretary determines that inclusion of
such an indemnity provision would facilitate activities under
the base efficiency project, the Secretary shall include a
recommendation in the report regarding the nature and extent of
the indemnification to be provided.

Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

SEC. 2821. LEASE BACK OF BASE CLOSURE PROPERTY.

(a) 1988 Law.--Section 204(b)(4) of the Defense
Authorization Amendments and Base Closure and Realignment Act
(Public Law 100-526; 10 U.S.C. 2687 note) is amended--
(1) by redesignating subparagraphs (E), (F), (G),
(H), and (I) as subparagraphs (F), (G), (H), (I), and
(J), respectively; and
(2) by inserting after subparagraph (D) the
following new subparagraph (E):
``(E)(i) The Secretary may transfer real property at an
installation approved for closure or realignment under this
title (including property at an installation approved for
realignment which will be retained by the Department of Defense
or another Federal agency after realignment) to the
redevelopment authority for the installation if the
redevelopment authority agrees to lease, directly upon
transfer, one or more portions of the property transferred
under this subparagraph to the Secretary or to the head of
another department or agency of the Federal Government.
Subparagraph (B) shall apply to a transfer under this
subparagraph.
``(ii) A lease under clause (i) shall be for a term of not
to exceed 50 years, but may provide for options for renewal or
extension of the term by the department or agency concerned.
``(iii) A lease under clause (i) may not require rental
payments by the United States.
``(iv) A lease under clause (i) shall include a provision
specifying that if the department or agency concerned ceases
requiring the use of the leased property before the expiration
of the term of the lease, the remainder of the lease term may
be satisfied by the same or another department or agency of the
Federal Government using the property for a use similar to the
use under the lease. Exercise of the authority provided by this
clause shall be made in consultation with the redevelopment
authority concerned.
``(v) Notwithstanding clause (iii), if a lease under clause
(i) involves a substantial portion of the installation, the
department or agency concerned may obtain facility services for
the leased property and common area maintenance from the
redevelopment authority or the redevelopment authority's
assignee as a provision of the lease. The facility services and
common area maintenance shall be provided at a rate no higher
than the rate charged to non-Federal tenants of the transferred
property. Facility services and common area maintenance covered
by the lease shall not include--
``(I) municipal services that a State or local
government is required by law to provide to all
landowners in its jurisdiction without direct charge;
or
``(II) firefighting or security-guard functions.''.
(b) 1990 Law.--Section 2905(b)(4)(E) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) is amended by adding
at the end the following new clause:
``(v) Notwithstanding clause (iii), if a lease under clause
(i) involves a substantial portion of the installation, the
department or agency concerned may obtain facility services for
the leased property and common area maintenance from the
redevelopment authority or the redevelopment authority's
assignee as a provision of the lease. The facility services and
common area maintenance shall be provided at a rate no higher
than the rate charged to non-Federal tenants of the transferred
property. Facility services and common area maintenance covered
by the lease shall not include--
``(I) municipal services that a State or local
government is required by law to provide to all
landowners in its jurisdiction without direct charge;
or
``(II) firefighting or security-guard functions.''.

Subtitle D--Land Conveyances

PART I--ARMY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, WHITTIER-ANCHORAGE PIPELINE TANK FARM,
ANCHORAGE, ALASKA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to the Port of Anchorage, an entity of the Municipality
of Anchorage, Alaska (in this section referred to as the
``Port''), all right, title, and interest of the United States
in and to two adjoining parcels of real property, including any
improvements thereon, consisting of approximately 48 acres in
Anchorage, Alaska, which are known as of the Whittier-Anchorage
Pipeline Tank Farm, for the purpose of permitting the Port to
use the parcels for economic development.
(b) Consideration.--As consideration for the conveyance
under subsection (a), the Port shall pay to the United States
an amount, in cash or in-kind, equal to not less than the fair
market value of the conveyed property, as determined by the
Secretary. The Secretary may authorize the Port to carry out,
as in-kind consideration, environmental remediation activities
for the property to be conveyed.
(c) Time for Conveyance.--The Secretary may delay the
conveyance under subsection (a) until such time as the Army
studies relating to the Alaska deployment of the Interim
Brigade Combat Team in Alaska are completed.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
Port.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2832. LEASE AUTHORITY, FORT DERUSSY, HAWAII.

(a) Lease Authorized.--Notwithstanding section 809 of the
Military Construction Authorization Act, 1968 (Public Law 90-
110; 81 Stat. 309), and section 2814(b) of the Military
Construction Authorization Act, 1989 (Public Law 100-456; 102
Stat. 2117), the Secretary of the Army may enter into a lease
with the City and County of Honolulu, Hawaii, for the purpose
of making available to the City and County a parcel of real
property at Fort DeRussy, Hawaii, for the construction and
operation of a parking facility. The size and location of the
parcel shall be determined by the Secretary.
(b) Terms and Conditions.--The lease under subsection (a)
may be for such term of years, require such consideration, and
contain such other terms and conditions as the Secretary
considers appropriate to protect the interests of the United
States.
(c) Relationship to Other Lease Authority.--Section 2667 of
title 10, United States Code, shall not apply to the lease
under subsection (a).
(d) Disposition of Money Rentals.--All money rentals
received pursuant to the lease under subsection (a) shall be--
(1) retained by the Secretary;
(2) credited to an appropriation account that
supports the operation and maintenance of Fort DeRussy;
and
(3) available for such purpose until expended.

SEC. 2833. MODIFICATION OF LAND EXCHANGE, ROCK ISLAND ARSENAL,
ILLINOIS.

(a) Additional Conveyance Authorized.--Subsection (a) of
section 2832 of the Military Construction Authorization Act for
Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat.
857) is amended--
(1) by inserting ``(1)'' after ``Conveyance
Authorized.--''; and
(2) by adding at the end the following new
paragraph:
``(2) The Secretary may convey to the City all right,
title, and interest of the United States in and to an
additional parcel of real property, including improvements
thereon, at the Rock Island Arsenal consisting of approximately
.513 acres.''.
(b) Consideration.--Subsection (b) of such section is
amended--
(1) by inserting ``(1)'' after ``Consideration.--
'';
(2) by striking ``subsection (a)'' both places it
appears and inserting ``subsection (a)(1)''; and
(3) by adding at the end the following new
paragraph:
``(2) As consideration for the conveyance under subsection
(a)(2), the City shall convey to the Secretary all right,
title, and interest of the City in and to a parcel of real
property consisting of approximately .063 acres and construct
on the parcel, at the City's expense, a new access ramp to the
Rock Island Arsenal.''.

SEC. 2834. LAND CONVEYANCE, FORT DES MOINES, IOWA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to Fort Des Moines Memorial
Park, Inc., a nonprofit organization (in this section referred
to as the ``Memorial Park''), all right, title, and interest of
the United States in and to a parcel of real property,
including improvements thereon, consisting of approximately 4.6
acres located at Fort Des Moines United States Army Reserve
Center, Des Moines, Iowa, for the purpose of the establishment
of the Fort Des Moines Memorial Park and Education Center.
(b) Condition of Conveyance.--The conveyance under
subsection (a) shall be subject to the condition that the
Memorial Park use the property for museum and park purposes.
(c) Reversion.--If the Secretary determines at any time
that the real property conveyed under subsection (a) is not
being used for museum and park purposes, all right, title, and
interest in and to the real property, including any
improvements thereon, shall revert to the United States, and
the United States shall have the right of immediate entry
thereon.
(d) Reimbursement for Costs of Conveyance.--(1) The
Memorial Park shall reimburse the Secretary for the excess
costs incurred by the Secretary for any environmental
assessment, study, or analysis, or for any other excess costs
incurred by the Secretary, in connection with the conveyance
authorized by this section, if the excess costs were incurred
as a result of a request by the Memorial Park. In this
paragraph, the term ``excess costs'' means costs in excess of
those costs considered reasonable and necessary by the
Secretary to comply with existing law to make the conveyance
authorized by subsection (a).
(2) Section 2695(c) of title 10 United States Code, shall
apply to any amount received under this subsection.
(e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
Memorial Park.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2835. MODIFICATION OF LAND CONVEYANCES, FORT DIX, NEW JERSEY.

Section 2835(c) of the Military Construction Authorization
Act for Fiscal Year 1998 (division B of Public Law 105-85; 111
Stat. 2004) is amended by adding at the end the following new
paragraph:
``(3) Notwithstanding paragraph (1) or (2), the Borough and
Board may exchange between each other, without the consent of
the Secretary, all or any portion of the property conveyed
under subsection (a) so long as the property continues to be
used by the grantees for economic development or educational
purposes.''.

SEC. 2836. LAND CONVEYANCE, ENGINEER PROVING GROUND, FORT BELVOIR,
VIRGINIA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to the Commonwealth of Virginia (in this section
referred to as the ``Commonwealth'') all right, title, and
interest of United States in and to two parcels of real
property, including any improvements thereon, located at the
Engineer Proving Ground, Fort Belvoir, Virginia, as follows:
(1) The parcel, consisting of approximately 170
acres, that is to be used for construction of a portion
of the Fairfax County Parkway.
(2) The parcel, consisting of approximately 11.45
acres, that is subject to an easement previously
granted to the Commonwealth as Army easement DACA 31-3-
96-440 for the construction of a portion of Interstate
Highway 95.
(b) Consideration.--As consideration for the conveyance
under subsection (a), the Commonwealth shall--
(1) design and construct, at its expense and for
public benefit, the portion of the Fairfax County
Parkway through the Engineer Proving Ground;
(2) provide a conceptual design for eventual
incorporation and construction by others of access into
the Engineer Proving Ground at the Rolling Road
Interchange from Fairfax County Parkway as specified in
Virginia Department of Transportation Project #R000-
029-249, C514;
(3) provide such easements or rights of way for
utilities under or across the Fairfax County Parkway as
the Secretary considers appropriate for the optimum
development of the Engineer Proving Ground; and
(4) pay the United States an amount, jointly
determined by the Secretary and the Commonwealth,
appropriate to cover the costs of constructing a
replacement building for building 5089 located on the
Engineer Proving Ground.
(c) Responsibility for Environmental Cleanup.--The
Secretary shall retain liability under the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9601 et seq.), and any other applicable
environmental statute or regulation, for any environmental
hazard on the property conveyed under subsection (a) as of the
date of the conveyance under that subsection.
(d) Acceptance and Disposition of Funds.--(1) The Secretary
of the Army may accept the funds paid by the Commonwealth as
consideration under subsection (b)(4) and shall credit the
accepted funds to the appropriation or appropriations that are
appropriate for paying the costs of the replacement of Building
5089, located on the Engineer Proving Ground, Fort Belvoir,
Virginia, consistent with paragraphs (2) and (3) of this
subsection.
(2) Funds accepted under paragraph (1) shall be available,
until expended, for the replacement of Building 5089.
(3) Funds appropriated pursuant to the authorization of
appropriations in section 301(a)(1), and funds appropriated
pursuant to the authorization of appropriations in section
2104(a)(4), shall be available in accordance with section 2805
of title 10, United States Code, for the excess, if any, of the
cost of the replacement of Building 5089 over the amount
available for such project under paragraph (2).
(e) Description of Property.--(1) The exact acreage and
legal description of the real property to be conveyed under
subsection (a)(1) shall be determined by a survey satisfactory
to the Secretary. The cost of the survey shall be borne by the
Commonwealth.
(2) The exact acreage and legal description of the real
property to be conveyed under subsection (a)(2) are as set
forth in Army easement DACA 31-3-96-440.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2837. LAND EXCHANGE AND CONSOLIDATION, FORT LEWIS, WASHINGTON.

(a) Exchange Authorized.--(1) The Secretary of the Army may
convey to the Nisqually Tribe, a federally recognized Indian
tribe whose tribal lands are located within the State of
Washington, all right, title, and interest of the United States
in and to two parcels of real property, including any
improvements thereon, consisting of approximately 138 acres at
Fort Lewis, Washington, in exchange for the real property
described in subsection (b).
(2) The property authorized for conveyance under paragraph
(1) does not include Bonneville Power Administration
transmission facilities or the right of way described in
subsection (c).
(b) Consideration.--As consideration for the conveyance
under subsection (a), the Nisqually Tribe shall--
(1) acquire from Thurston County, Washington,
several parcels of real property consisting of
approximately 416 acres that are owned by the county,
are located within the boundaries of Fort Lewis, and
are currently leased by the Army; and
(2) convey fee title over the acquired property to
the Secretary.
(c) Right-of-Way for Bonneville Power Administration.--The
Secretary may use the authority provided in section 2668 of
title 10, United States Code, to convey to the Bonneville Power
Administration a right-of-way that authorizes the Bonneville
Power Administration to use real property at Fort Lewis as a
route for the Grand Coulee-Olympia and Olympia-White River
electric transmission lines and appurtenances for the purpose
of facilitating the removal of such transmission lines from
tribal lands of the Nisqually Tribe.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) and acquired under subsection (b) shall be
determined by surveys satisfactory to the Secretary and the
Nisqually Tribe. The cost of a survey shall be borne by the
recipient of the property being surveyed.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, KEWAUNEE, WISCONSIN.

(a) Conveyance Authorized.--The Administrator of General
Services may convey, without consideration, to the City of
Kewaunee, Wisconsin (in this section referred to as the
``City''), all right, title, and interest of the United States
in and to a parcel of Federal real property, including
improvements thereon, that is located at 401 5th Street in
Kewaunee, Wisconsin, and contains a surplus Army Reserve
Center. After such conveyance, the property may be used and
occupied only by the City or by another local or State
government entity approved by the City.
(b) Reversionary Interest.--(1) During the 20-year period
beginning on the date the Administrator makes the conveyance
under subsection (a), if the Administrator determines that the
conveyed property is not being used and occupied in accordance
with such subsection, all right, title, and interest in and to
the property, including any improvements thereon, shall revert
to the United States.
(2) Upon reversion, the Administrator shall immediately
proceed to a public sale of the property. The Administrator
shall deposit the net proceeds from the public sale in the land
and water conservation fund established under section 2 of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C 460l-5).
(c) Additional Limitation on Use.--The property conveyed
under subsection (a) shall not be used for commercial purposes.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Administrator. The cost of the survey shall be borne by the
City.
(e) Additional Terms and Conditions.--The Administrator may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Administrator
considers appropriate to protect the interests of the United
States.

PART II--NAVY CONVEYANCES

SEC. 2841. TRANSFER OF JURISDICTION, CENTERVILLE BEACH NAVAL STATION,
HUMBOLDT COUNTY, CALIFORNIA.

(a) Transfer Authorized.--The Secretary of the Navy may
transfer, without reimbursement, to the administrative
jurisdiction of the Secretary of the Interior the real
property, including any improvements thereon, consisting of the
closed Centerville Beach Naval Station in Humboldt County,
California, for the purpose of permitting the Secretary of the
Interior to manage the real property as open space or for other
public purposes.
(b) Legal Description.--The exact acreage and legal
description of the real property to be transferred under this
section shall be determined by a survey satisfactory to the
Secretary of the Navy. The cost of the survey shall be borne by
the Secretary of the Interior.
(c) Additional Terms and Conditions.--The Secretary of the
Navy may require such additional terms and conditions in
connection with the transfer under subsection (a) as the
Secretary of the Navy considers appropriate to protect the
interests of the United States.

SEC. 2842. LAND CONVEYANCE, PORT OF LONG BEACH, CALIFORNIA.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey to the City of Long Beach, California, acting by and
through its Board of Harbor Commissioners (in this section
referred to as the ``City''), all right, title, and interest of
the United States in and to up to 11.08 acres of real property,
including any improvements thereon, comprising a portion of the
Navy Mole at the former Long Beach Naval Complex, Long Beach,
California, for the purpose of permitting the City to use the
property to support the reuse of other former Navy property
conveyed to the City.
(b) Consideration.--(1) Subject to paragraph (2), as
consideration for the conveyance under subsection (a), the City
shall--
(A) convey to the Secretary all right, title, and
interest of the City in and to a parcel of real
property of equal size on the Mole that is acceptable
to the Secretary; and
(B) construct on the property conveyed under
subparagraph (A) suitable replacement fuel transfer and
storage facilities for the Navy, similar or equivalent
to the facilities on the property to be conveyed under
subsection (a), as determined necessary by the
Secretary.
(2) If the Secretary determines that replacement fuel
transfer and storage facilities are not required by the Navy,
the Secretary may make the conveyance under subsection (a) at
no cost to the City.
(c) Time for Conveyance.--Unless the Secretary makes the
determination referred to in subsection (b)(2), the conveyance
to the City authorized by subsection (a) shall be made only
after the Secretary determines that the replacement fuel
transfer and storage facilities have been constructed and are
ready for use.
(d) Construction Schedule.--The City shall construct the
replacement fuel transfer and storage facilities pursuant to
such schedule and in such a manner so as to not interrupt or
otherwise adversely affect the capability of the Navy to
accomplish its mission.
(e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsections (a) and (b) shall be determined by surveys
satisfactory to the Secretary. The City shall be responsible
for conducting the surveys.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2843. CONVEYANCE OF PIER, NAVAL BASE, SAN DIEGO, CALIFORNIA.

(a) Conveyance Authorized.--(1) The Secretary of the Navy
may convey, without consideration, to the San Diego Aircraft
Carrier Museum or its designee (in this section referred to as
the ``Museum'') all right, title, and interest of the United
States in and to the property known as Pier 11A at Naval Base,
San Diego, California, together with associated structures and
interests in the land underlying the pier, if any, for the
purpose of permitting the Museum to use the property to berth a
vessel and operate a museum for the general public.
(2) The Secretary may not make the conveyance until such
time as the Museum certifies that the Museum has acquired an
interest in property from the State of California or a
political subdivision of the State to facilitate the use of the
conveyed pier to berth a vessel and operate a museum for the
general public.
(b) Assumption of Liability.--The Museum shall expressly
accept any and all liability pertaining to the physical
condition of the property conveyed under subsection (a) and
shall hold the United States harmless from any and all
liability arising from the property's physical condition.
(c) Reimbursement for Costs of Conveyance.--(1) The Museum
shall reimburse the Secretary for the excess costs incurred by
the Secretary for any environmental assessment, study, or
analysis, or for any other excess costs incurred by the
Secretary, in connection with the conveyance authorized by this
section, if the excess costs were incurred as a result of a
request by the Museum. In this paragraph, the term ``excess
costs'' means costs in excess of those costs considered
reasonable and necessary by the Secretary to comply with
existing law to make the conveyance authorized by subsection
(a).
(2) Section 2695(c) of title 10, United States Code, shall
apply to any amount received by the Secretary under this
subsection.
(d) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
The cost of the survey shall be borne by the Museum.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2844. MODIFICATION OF AUTHORITY FOR CONVEYANCE OF NAVAL COMPUTER
AND TELECOMMUNICATIONS STATION, CUTLER, MAINE.

Section 2853(a) of the Military Construction Authorization
Act for Fiscal Year 2001 (division B of the Spence Act; 114
Stat. 1654A-430) is amended by inserting ``any or'' before
``all right''.

SEC. 2845. LAND TRANSFER AND CONVEYANCE, NAVAL SECURITY GROUP ACTIVITY,
WINTER HARBOR, MAINE.

(a) Transfer of Jurisdiction of Schoodic Point Property
Authorized.--(1) The Secretary of the Navy may transfer to the
Secretary of the Interior administrative jurisdiction of a
parcel of real property, including any improvements thereon and
appurtenances thereto, consisting of approximately 26 acres as
generally depicted as Tract 15-116 on the map entitled ``Acadia
National Park Schoodic Point Area'', numbered 123/80,418 and
dated May 2001. The map shall be on file and available for
inspection in the appropriate offices of the National Park
Service.
(2) The transfer authorized by this subsection shall occur,
if at all, concurrently with the reversion of administrative
jurisdiction of a parcel of real property consisting of
approximately 71 acres, as depicted as Tract 15-115 on the map
referred to in paragraph (1), from the Secretary of the Navy to
the Secretary of the Interior as authorized by Public Law 80-
260 (61 Stat. 519) and to be executed on or about June 30,
2002.
(b) Conveyance of Corea and Winter Harbor Properties
Authorized.--The Secretary of the Navy may convey, without
consideration, to the State of Maine, any political subdivision
of the State of Maine, or any tax-supported agency in the State
of Maine, all right, title, and interest of the United States
in and to any of the parcels of real property, including any
improvements thereon and appurtenances thereto, consisting of
approximately 485 acres and comprising the former facilities of
the Naval Security Group Activity, Winter Harbor, Maine,
located in Hancock County, Maine, less the real property
described in subsection (a)(1), for the purpose of economic
redevelopment.
(c) Transfer of Personal Property.--The Secretary of the
Navy may transfer, without consideration, to the Secretary of
the Interior in the case of the real property transferred under
subsection (a), or to any recipient of such real property in
the case of real property conveyed under subsection (b), any or
all personal property associated with the real property so
transferred or conveyed, including any personal property
required to continue the maintenance of the infrastructure of
such real property (including the generators for an
uninterrupted power supply in building 154 at the Corea site).
(d) Maintenance of Property Pending Conveyance.--(1) The
Secretary of the Navy shall maintain any real property,
including any improvements thereon, appurtenances thereto, and
supporting infrastructure, to be conveyed under subsection (b)
in accordance with the protection and maintenance standards
specified in section 101-47.4913 of title 41, Code of Federal
Regulations, until the earlier of--
(A) the date of the conveyance of such real
property under subsection (b); or
(B) September 30, 2003.
(2) The requirement in paragraph (1) shall not be construed
as authority to improve the real property, improvements, and
infrastructure referred to in that paragraph so as to bring
such real property, improvements, or infrastructure into
compliance with any zoning or property maintenance codes or to
repair any damage to such improvements and infrastructure
caused by natural accident or disaster.
(e) Interim Lease.--(1) Until such time as any parcel of
real property to be conveyed under subsection (b) is conveyed
by deed under that subsection, the Secretary of the Navy may
lease such parcel to any person or entity determined by the
Secretary to be an appropriate lessee of such parcel.
(2) The amount of rent for a lease under paragraph (1)
shall be the amount determined by the Secretary to be
appropriate, and may be an amount less than the fair market
value of the lease.
(f) Reimbursement for Environmental and Other
Assessments.--(1) The Secretary of the Navy may require each
recipient of real property conveyed under subsection (b) to
reimburse the Secretary for the excess costs incurred by the
Secretary for any environmental assessment, study, or analysis
carried out by the Secretary in connection with the conveyance
of such property, if the excess costs were incurred as a result
of a request by the recipient. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyance to the recipient.
(2) Section 2695(c) of title 10, United States Code, shall
apply to any amount received by the Secretary under this
subsection.
(g) Description of Property.--The exact acreage and legal
description of the real property transferred under subsection
(a), and each parcel of real property conveyed under subsection
(b), shall be determined by a survey satisfactory to the
Secretary of the Navy. The cost of any survey for real property
conveyed under subsection (b) shall be borne by the recipient
of the real property.
(h) Additional Terms and Conditions.--The Secretary of the
Navy may require such additional terms and conditions in
connection with any conveyance under subsection (b), and any
lease under subsection (e), as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2846. LAND ACQUISITION, PERQUIMANS COUNTY, NORTH CAROLINA.

The Secretary of the Navy may, using funds previously
appropriated for such purpose, acquire any and all right,
title, and interest in and to a parcel of real property,
including improvements thereon, consisting of approximately 240
acres, or any portion thereof, in Perquimans County, North
Carolina, for purposes of including such parcel in the Harvey
Point Defense Testing Activity, Hertford, North Carolina.

SEC. 2847. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT,
TOLEDO, OHIO.

(a) Conveyance Authorized.--(1) The Secretary of the Navy
may convey, without consideration, to the Toledo-Lucas County
Port Authority, Ohio (in this section referred to as the ``Port
Authority''), any or all right, title, and interest of the
United States in and to a parcel of real property, including
any improvements thereon, consisting of approximately 29 acres
and comprising the Naval Weapons Industrial Reserve Plant,
Toledo, Ohio.
(2) The Secretary may include in the conveyance under
paragraph (1) such facilities, equipment, fixtures, and other
personal property located or based on the parcel conveyed under
that paragraph, or used in connection with the parcel, as the
Secretary determines to be excess to the Navy.
(b) Lease Authority.--Until such time as the real property
described in subsection (a)(1) is conveyed by deed, the
Secretary may lease such real property, and any personal
property described in subsection (a)(2), to the Port Authority
in exchange for such security, fire protection, and maintenance
services as the Secretary considers appropriate.
(c) Conditions of Conveyance.--The conveyance under
subsection (a), and any lease under subsection (b), shall be
subject to the conditions that the Port Authority--
(1) accept the real and personal property concerned
in their condition at the time of the conveyance or
lease, as the case may be; and
(2) except as provided in subsection (d), use the
real and personal property concerned, whether directly
or through an agreement with a public or private
entity, for economic development or such other public
purposes as the Port Authority considers appropriate.
(d) Subsequent Use.--(1) Subject to the approval of the
Secretary, the Port Authority may sublease real property or
personal property covered by a lease under subsection (b) to
another person for economic development or such other public
purposes as the Port Authority considers appropriate.
(2) Following the conveyance of real property under
subsection (a), the Port Authority may lease or reconvey the
real property, and any personal property conveyed with such
real property under that subsection, for economic development
or such other public purposes as the Port Authority considers
appropriate.
(e) Reimbursement for Costs of Conveyance and Lease.--(1)
The Port Authority shall reimburse the Secretary for the excess
costs incurred by the Secretary for any environmental
assessment, study, or analysis, or for any other excess costs
incurred by the Secretary, in connection with the conveyance
authorized by this section, if the excess costs were incurred
as a result of a request by the Port Authority. In this
paragraph, the term ``excess costs'' means costs in excess of
those costs considered reasonable and necessary by the
Secretary to comply with existing law to make the conveyance
authorized by subsection (a).
(2) Section 2695(c) of title 10, United States Code, shall
apply to any amount received by the Secretary under this
subsection.
(f) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a)(1), and an appropriate inventory or other
description of the personal property to be conveyed under
subsection (a)(2), shall be determined by a survey and other
means satisfactory to the Secretary. The cost of the survey
shall be borne by the Port Authority.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a)(1), and any lease under
subsection (b), as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2848. MODIFICATION OF LAND CONVEYANCE, FORMER UNITED STATES MARINE
CORPS AIR STATION, EAGLE MOUNTAIN LAKE, TEXAS.

Section 5 of Public Law 85-258 (71 Stat. 583) is amended by
inserting before the period at the end the following: ``or for
the protection, maintenance, and operation of other Texas
National Guard facilities''.

PART III--AIR FORCE CONVEYANCES

SEC. 2851. CONVEYANCE OF AVIGATION EASEMENTS, FORMER NORTON AIR FORCE
BASE, CALIFORNIA.

(a) Conveyance Required.--The Administrator of General
Services shall convey, without consideration, to the Inland
Valley Development Agency (the redevelopment authority for
former Norton Air Force Base, California) two avigation
easements (identified as APN 289-231-08 and APN 289-232-08)
held by the United States.
(b) Condition of Conveyance.--The conveyance required by
subsection (a) shall be subject to the condition that, if the
recipient sells one or both of the easements conveyed under
subsection (a), the recipient shall pay to the United States an
amount equal to the lesser of--
(1) the sale price of the easement; or
(2) the fair market value of the easement.
(c) Duration of Condition.--The condition specified in
subsection (b) shall apply only to a conveyance that occurs
during the 10-year period beginning on the date the
Administrator makes the conveyance required by subsection (a).

SEC. 2852. REEXAMINATION OF LAND CONVEYANCE, LOWRY AIR FORCE BASE,
COLORADO.

The Secretary of the Air Force shall reevaluate the terms
and conditions of the pending negotiated sale agreement with
the Lowry Redevelopment Authority for certain real property at
Lowry Air Force Base, Colorado, in light of changed
circumstances regarding the property, including changes in the
flood plain designations affecting some of the property, to
determine whether the changed circumstances warrant a reduction
in the amount of consideration otherwise required under the
agreement or other modifications to the agreement.

SEC. 2853. WATER RIGHTS CONVEYANCE, ANDERSEN AIR FORCE BASE, GUAM.

(a) Authority To Convey.--In conjunction with the
conveyance of the water supply system for Andersen Air Force
Base, Guam, under the authority of section 2688 of title 10,
United States Code, and in accordance with all the requirements
of that section, the Secretary of the Air Force may convey all
right, title, and interest of the United States, or such lesser
estate as the Secretary considers appropriate to serve the
interests of the United States, in the water rights related to
the following Air Force properties located on Guam:
(1) Andy South, also known as the Andersen
Administrative Annex.
(2) Marianas Bonins Base Command.
(3) Andersen Water Supply Annex, also known as the
Tumon Water Well or the Tumon Maui Well.
(b) Additional Requirements.--The Secretary may exercise
the authority contained in subsection (a) only if the
Secretary--
(1) determines that adequate supplies of potable
groundwater exist under the main base and northwest
field portions of Andersen Air Force Base to meet the
current and long-term requirements of the installation
for water;
(2) determines that such supplies of groundwater
are economically obtainable; and
(3) requires the conveyee of the water rights under
subsection (a) to provide a water system capable of
meeting the water supply needs of the main base and
northwest field portions of Andersen Air Force Base, as
determined by the Secretary.
(c) Interim Water Supplies.--If the Secretary determines
that it is in the best interests of the United States to
transfer title to the water rights and utility systems at Andy
South and Andersen Water Supply Annex before placing into
service a replacement water system and well field on Andersen
Air Force Base, the Secretary may require that the United
States have the primary right to all water produced from Andy
South and Andersen Water Supply Annex until the replacement
water system and well field is placed into service and operates
to the satisfaction of the Secretary. In exercising the
authority provided by this subsection, the Secretary may retain
a reversionary interest in the water rights and utility systems
at Andy South and Andersen Water Supply Annex until such time
as the replacement water system and well field is placed into
service and operates to the satisfaction of the Secretary.
(d) Sale of Excess Water Authorized.--(1) As part of the
conveyance of water rights under subsection (a), the Secretary
may authorize the conveyee of the water system to sell to
public or private entities such water from Andersen Air Force
Base as the Secretary determines to be excess to the needs of
the United States. In the event the Secretary authorizes the
conveyee to resell water, the Secretary shall negotiate a
reasonable return to the United States of the value of such
excess water sold by the conveyee, which return the Secretary
may receive in the form of reduced charges for utility services
provided by the conveyee.
(2) If the Secretary cannot meet the requirements of
subsection (b), and the Secretary determines to proceed with a
water utility system conveyance under section 2688 of title 10,
United States Code, without the conveyance of water rights, the
Secretary may provide in any such conveyance that the conveyee
of the water system may sell to public or private entities such
water from Andy South and Andersen Water Supply Annex as the
Secretary determines to be excess to the needs of the United
States. The Secretary shall negotiate a reasonable return to
the United States of the value of such excess water sold by the
conveyee, which return the Secretary may receive in the form of
reduced charges for utility services provided by the conveyee.
(e) Treatment of Water Rights.--For purposes of section
2688 of title 10, United States Code, the water rights referred
to in subsection (a) shall be considered as part of a utility
system (as that term is defined in subsection (h)(2) of such
section).

SEC. 2854. CONVEYANCE OF SEGMENT OF LORING PETROLEUM PIPELINE, MAINE,
AND RELATED EASEMENTS.

(a) Conveyance Authorized.--The Secretary of the Air Force
may convey, without consideration, to the Loring Development
Authority, Maine (in this section referred to as the
``Authority''), all right, title, and interest of the United
States in and to the segment of the Loring Petroleum (POL)
Pipeline, Maine, consisting of approximately 27 miles in length
and running between the Searsport terminal and Bangor Air
National Guard Base.
(b) Related Easements.--As part of the conveyance
authorized by subsection (a), the Secretary may convey to the
Authority, without consideration, all right, title, and
interest of the United States in and to any easements or
rights-of-way necessary for the operation or maintenance of the
segment of pipeline conveyed under that subsection.
(c) Reimbursement for Costs of Conveyance.--(1) The
Authority shall reimburse the Secretary for the excess costs
incurred by the Secretary for any environmental assessment,
study, or analysis, or for any other excess costs incurred by
the Secretary, in connection with the conveyance authorized by
this section, if the excess costs were incurred as a result of
a request by the Authority. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyance authorized by
subsection (a).
(2) Section 2695(c) of title 10, United States Code, shall
apply to any amount received by the Secretary under this
subsection.
(d) Description of Property.--The exact acreage and legal
description of the segment of pipeline conveyed under
subsection (a), and of any easements or rights-of-way conveyed
under subsection (b), shall be determined by surveys and other
means satisfactory to the Secretary. The cost of any survey or
other services performed at the direction of the Secretary
under the preceding sentence shall be borne by the Authority.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2855. LAND CONVEYANCE, PETROLEUM TERMINAL SERVING FORMER LORING
AIR FORCE BASE AND BANGOR AIR NATIONAL GUARD BASE,
MAINE.

(a) Conveyance Authorized.--(1) The Secretary of the Air
Force may convey to the Maine Port Authority of the State of
Maine (in this section referred to as the ``Authority'') all
right, title, and interest of the United States in and to the
Petroleum Terminal (POL) at Mack Point, Searsport, Maine, which
served former Loring Air Force Base and Bangor Air National
Guard Base, Maine.
(2) The conveyance under paragraph (1) may include the
following:
(A) A parcel of real property, including any
improvements thereon, consisting of approximately 20
acres and comprising a portion of the Petroleum
Terminal.
(B) Any additional fuel tanks, other improvements,
and equipment located on the 43-acre parcel of property
adjacent to the property described in subparagraph (A),
and leased by the Secretary as of the date of the
enactment of this Act, which constitutes the remaining
portion of the Petroleum Terminal.
(b) Condition of Conveyance.--The Secretary may not make
the conveyance under subsection (a) unless the Authority agrees
to utilize the property to be conveyed under that subsection
solely for economic development purposes.
(c) Consideration.--(1) As consideration for the conveyance
under subsection (a), the Authority shall lease to the
Secretary approximately one acre of the real property conveyed
under that subsection, together with any improvements thereon,
that constitutes the Aerospace Fuels Laboratory (also known as
Building 14).
(2) The real property leased under this subsection shall
include the parking lot, outbuildings, and other improvements
associated with the Aerospace Fuels Laboratory and such
easements of ingress and egress to the real property, including
easements for utilities, as are required for the operations of
the Aerospace Fuels Laboratory.
(3) As part of the lease of real property under this
subsection, the Authority shall maintain around the real
property for the term of the lease a zone, not less than 75
feet in depth, free of improvements or encumbrances.
(4) The lease under this subsection shall be without cost
to the United States.
(5) The term of the lease under this subsection may not
exceed 25 years. If operations at the Aerospace Fuels
Laboratory cease before the expiration of the term of the lease
otherwise provided for under this subsection, the lease shall
be deemed to have expired upon the cessation of such
operations.
(d) Conveyance Contingent on Expiration of Lease of Fuel
Tanks.--The Secretary may not make the conveyance under
subsection (a) until the expiration of the lease referred to in
paragraph (2)(B) of that subsection.
(e) Reimbursement for Costs of Conveyance.--(1) The
Authority shall reimburse the Secretary for the excess costs
incurred by the Secretary for any environmental assessment,
study, or analysis, or for any other excess costs incurred by
the Secretary, in connection with the conveyance authorized by
this section, if the excess costs were incurred as a result of
a request by the Authority. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyance authorized by
subsection (a).
(2) Section 2695(c) of title 10, United States Code, shall
apply to any amount received by the Secretary under this
subsection.
(f) Description of Property.--The exact acreage and legal
description of the real property conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
The cost of the survey shall be borne by the Authority.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a), and the lease under
subsection (c), as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2856. LAND CONVEYANCES, CERTAIN FORMER MINUTEMAN III ICBM
FACILITIES IN NORTH DAKOTA.

(a) Conveyances Authorized.--(1) The Secretary of the Air
Force may convey, without consideration, to the State
Historical Society of North Dakota (in this section referred to
as the ``Historical Society'') all right, title, and interest
of the United States in and to parcels of real property,
together with any improvements thereon, of the Minuteman III
ICBM facilities of the former 321st Missile Group at Grand
Forks Air Force Base, North Dakota, as follows:
(A) The parcel consisting of the launch facility
designated ``November-33''.
(B) The parcel consisting of the missile alert
facility and launch control center designated ``Oscar-
O''.
(2) The purpose of the conveyance of the facilities is to
provide for the establishment of an historical site allowing
for the preservation, protection, and interpretation of the
facilities.
(b) Consultation.--The Secretary shall consult with the
Secretary of State and the Secretary of Defense in order to
ensure that the conveyances required by subsection (a) are
carried out in accordance with applicable treaties.
(c) Historical Site.--The Secretary may, in cooperation
with the Historical Society, enter into one or more cooperative
agreements with appropriate public or private entities or
individuals in order to provide for the establishment and
maintenance of the historic site referred to in subsection
(a)(2).
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
Secretary.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2857. LAND CONVEYANCES, CHARLESTON AIR FORCE BASE, SOUTH CAROLINA.

(a) Conveyance to State of South Carolina Authorized.--The
Secretary of the Air Force may convey, without consideration,
to the State of South Carolina (in this section referred to as
the ``State''), all right, title, and interest of the United
States in and to a portion (as determined under subsection (c))
of the real property, including any improvements thereon,
consisting of approximately 24 acres at Charleston Air Force
Base, South Carolina, and comprising the Air Force Family
Housing Annex. The purpose of the conveyance is to facilitate
the Remount Road Project.
(b) Conveyance to City of North Charleston Authorized.--The
Secretary may convey, without consideration, to the City of
North Charleston, South Carolina (in this section referred to
as the ``City''), all right, title, and interest of the United
States in and to a portion (as determined under subsection (c))
of the real property, including any improvements thereon,
referred to in subsection (a). The purpose of the conveyance is
to permit the use of the property by the City for municipal
purposes.
(c) Determination of Portions of Property To Be Conveyed.--
(1) Subject to paragraph (2), the Secretary, the State, and the
City shall jointly determine the portion of the property
referred to in subsection (a) that is to be conveyed to the
State under subsection (a) and the portion of the property that
is to be conveyed to the City under subsection (b).
(2) In determining under paragraph (1) the portions of
property to be conveyed under this section, the portion to be
conveyed to the State shall be the minimum portion of the
property required by the State for the purpose specified in
subsection (a), and the portion to be conveyed to the City
shall be the balance of the property.
(d) Limitation on Conveyances.--The Secretary may not carry
out the conveyance of property authorized by subsection (a) or
(b) until the completion of an assessment of environmental
contamination of the property authorized to be conveyed by such
subsection for purposes of determining responsibility for
environmental remediation of such property.
(e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsections (a) and (b) shall be determined by surveys
satisfactory to the Secretary. The cost of the survey for the
property to be conveyed under subsection (a) shall be borne by
the State, and the cost of the survey for the property to be
conveyed under subsection (b) shall be borne by the City.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under subsections (a) and (b) as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2858. TRANSFER OF JURISDICTION, MUKILTEO TANK FARM, EVERETT,
WASHINGTON.

(a) Transfer Authorized.--The Secretary of the Air Force
shall transfer, without reimbursement, to the Secretary of
Commerce administrative jurisdiction over a parcel of real
property, including improvements thereon, consisting of
approximately 1.1 acres located at the Mukilteo Tank Farm in
Everett, Washington, and containing the Mukilteo Research
Center facility of the National Marine Fisheries Service.
(b) Time for Conveyance.--The Secretary of the Air Force
shall make the transfer under subsection (a) at the same time
that the Secretary makes the conveyance authorized by section
2866 of the Military Construction Authorization Act for Fiscal
Year 2001 (division B of the Spence Act; 114 Stat. 1654A-436).
(c) Exchange.--With the consent of the Port Authority for
Everett, Washington, the Secretary of Commerce may exchange
with the Port Authority all or any portion of the property
transferred under subsection (a) for a parcel of real property
of equal area at the Mukilteo Tank Farm that is owned by the
Port Authority.
(d) Administration.--The Secretary of Commerce shall
administer the property transferred under subsection (a) or
received under subsection (c) through the Administrator of the
National Oceanic and Atmospheric Administration as part of the
Administration. The Administrator shall use the property as the
location of a research facility, and may construct a new
facility on the property for such research purposes as the
Administrator considers appropriate.
(e) Effect of Failure to Utilize Transferred Property.--(1)
If, after the 12-year period beginning on the date of the
enactment of this Act, the Administrator is not using any
portion of the property transferred under subsection (a) or
received under subsection (c) for the purpose specified in
subsection (d), the Administrator shall convey, without
consideration, to the Port Authority for Everett, Washington,
all right, title, and interest in and to such portion of the
real property, including improvements thereon.
(2) The Port Authority shall use any real property conveyed
to the Port Authority under this subsection for development and
operation of a port facility and for other public purposes.
(f) Legal Description.--The exact acreage and legal
description of the real property to be transferred under
subsection (a) shall be determined by a survey satisfactory to
the Secretary of the Air Force. The cost of the survey shall be
borne by the Secretary of Commerce.
(g) Additional Terms and Conditions.--The Secretary of the
Air Force may require such additional terms and conditions in
connection with the transfer under subsection (a) as the
Secretary of the Air Force considers appropriate to protect the
interests of the United States.
(h) Conforming Amendment.--Section 2866(a) of the Military
Construction Authorization Act for Fiscal Year 2001 (division B
of the Spence Act; 114 Stat. 1654A-436) is amended by striking
``22 acres'' and inserting ``20.9 acres''.

Subtitle E--Other Matters

SEC. 2861. MANAGEMENT OF THE PRESIDIO OF SAN FRANCISCO.

(a) Authority to Lease Certain Housing Units for Use as
Army Housing.--Title I of division I of the Omnibus Parks and
Public Lands Management Act of 1996 (Public Law 104-333; 16
U.S.C. 460bb note) is amended by adding at the end the
following new section:

``SEC. 107. CONDITIONAL AUTHORITY TO LEASE CERTAIN HOUSING UNITS WITHIN
THE PRESIDIO.

``(a) Availability of Housing Units for Long-Term Army
Lease.--Subject to subsection (c), the Trust shall make
available for lease, to those persons designated by the
Secretary of the Army and for such length of time as requested
by the Secretary of the Army, 22 housing units located within
the Presidio that are under the administrative jurisdiction of
the Trust and specified in the agreement between the Trust and
the Secretary of the Army in existence as of the date of the
enactment of this section.
``(b) Lease Amount.--The monthly amount charged by the
Trust for the lease of a housing unit under this section shall
be equivalent to the monthly rate of the basic allowance for
housing that the occupant of the housing unit is entitled to
receive under section 403 of title 37, United States Code.
``(c) Condition on Continued Availability of Housing
Units.--Effective after the end of the four-year period
beginning on the date of the enactment of this section, the
Trust shall have no obligation to make housing units available
under subsection (a) unless, during that four-year period, the
Secretary of the Treasury purchases new obligations of at least
$80,000,000 issued by the Trust under section 104(d)(2). In the
event that this condition is not satisfied, the existing
agreement referred to in subsection (a) shall be renewed on the
same terms and conditions for an additional five years.''.
(b) Increased Borrowing Authority and Technical
Corrections.--Paragraphs (2) and (3) of section 104(d) of title
I of division I of the Omnibus Parks and Public Lands
Management Act of 1996, as amended by section 334 of appendix C
of Public Law 106-113 (113 Stat. 1501A-198) and amended and
redesignated by section 101(13) of Public Law 106-176 (114
Stat. 25), are amended--
(1) in paragraph (2), by striking ``including a
review of the creditworthiness of the loan and
establishment of a repayment schedule,'' the second
place it appears; and
(2) in paragraph (3)--
(A) by striking ``$50,000,000'' and
inserting ``$150,000,000''; and
(B) by striking ``paragraph (3) of''.

SEC. 2862. TRANSFER OF JURISDICTION FOR DEVELOPMENT OF AIR FORCE
MORALE, WELFARE, AND RECREATION FACILITY, PARK
CITY, UTAH.

(a) Transfer Authorized.--(1) The Secretary of the Interior
may transfer, without reimbursement, to the administrative
jurisdiction of the Secretary of the Air Force a parcel of real
property in Park City, Utah, including any improvements
thereon, that consists of approximately 35 acres, is located on
the north side of State highway 248 in township 2 south, range
4 east, Salt Lake meridian, and is designated as parcel 3 by
the Bureau of Land Management. The real property to be
transferred under this paragraph does not include any lands
located on the south side of State highway 248.
(2) The transfer shall be subject to existing rights,
except that the Secretary of the Interior shall terminate any
lease with respect to the parcel issued under the Act of June
14, 1926 (commonly known as the Recreation and Public Purposes
Act; 43 U.S.C. 689 et seq.), and still in effect as of the date
of the enactment of this Act.
(b) Use of Transferred Land.--(1) The Secretary of the Air
Force may use the real property transferred under subsection
(a) as the location for an Air Force morale, welfare, and
recreation facility to be developed using nonappropriated
funds.
(2) The Secretary of the Air Force may return the
transferred property (or property acquired in exchange for the
transferred property under subsection (c)) to the
administrative jurisdiction of the Secretary of the Interior at
any time upon certifying that development of the morale,
welfare, and recreation facility would not be in the best
interests of the Government.
(c) Subsequent Conveyance Authority.--(1) In lieu of
developing the Air Force morale, welfare, and recreation
facility on the real property transferred under subsection (a),
the Secretary of the Air Force may convey or lease the property
to the State of Utah, a local government, or a private entity
in exchange for other property to be used as the site of the
facility.
(2) The values of the properties exchanged by the Secretary
under this subsection either shall be equal, or if they are not
equal, the values shall be equalized by the payment of money to
the grantor or to the Secretary as the circumstances require.
The conveyance or lease shall be on such other terms as the
Secretary of the Air Force considers to be advantageous to the
development of the facility.
(d) Alternative Development Authority.--The Secretary of
the Air Force may lease the real property transferred under
subsection (a), or any property acquired pursuant to subsection
(c), to another party and may enter into a contract with the
party for the design, construction, and operation of the Air
Force morale, welfare, and recreation facility. The Secretary
of the Air Force may authorize the contractor to operate the
facility as both a military and a commercial operation if the
Secretary determines that such an authorization is a necessary
incentive for the contractor to agree to design, construct, and
operate the facility.
(e) Legal Description.--The exact acreage and legal
description of the real property to be transferred under
subsection (a) shall be determined by a survey. The cost of the
survey shall be borne by the Secretary of the Air Force.

SEC. 2863. ALTERNATE SITE FOR UNITED STATES AIR FORCE MEMORIAL,
PRESERVATION OF OPEN SPACE ON ARLINGTON RIDGE
TRACT, AND RELATED LAND TRANSFER AT ARLINGTON
NATIONAL CEMETERY, VIRGINIA.

(a) Definitions.--In this section:
(1) The term ``Arlington Naval Annex'' means the
parcel of Federal land located in Arlington County,
Virginia, that is subject to transfer to the
administrative jurisdiction of the Secretary of the
Army under section 2881 of the Military Construction
Authorization Act for Fiscal Year 2000 (division B of
Public Law 106-65; 113 Stat. 879).
(2) The term ``Foundation'' means the Air Force
Memorial Foundation, which was authorized in Public Law
103-163 (107 Stat. 1973; 40 U.S.C. 1003 note) to
establish a memorial in the District of Columbia or its
environs to honor the men and women who have served in
the United States Air Force and its predecessors.
(3) The term ``Air Force Memorial'' means the
United States Air Force Memorial to be established by
the Foundation.
(4) The term ``Arlington Ridge tract'' means the
parcel of Federal land in Arlington County, Virginia,
known as the Nevius Tract and transferred to the
Department of the Interior in 1953, that is bounded
generally by--
(A) Arlington Boulevard (United States
Route 50) to the north;
(B) Jefferson Davis Highway (Virginia Route
110) to the east;
(C) Marshall Drive to the south; and
(D) North Meade Street to the west.
(5) The term ``Section 29'' means a parcel of
Federal land in Arlington County, Virginia, that is
currently administered by the Secretary of the Interior
within the boundaries of Arlington National Cemetery
and is identified as ``Section 29''.
(b) Use of Arlington Naval Annex as Site for Air Force
Memorial.--
(1) Availability of site.--The Secretary of Defense
shall make available to the Foundation, without
reimbursement, up to three acres of the Arlington Naval
Annex, which the Foundation shall use as the location
for the Air Force Memorial in lieu of any previously
approved location for the Air Force Memorial. The land
made available shall include the promontory adjacent
to, and the land underlying, Wing 8 of Federal Office
Building #2 in the northeast quadrant of the Arlington
Naval Annex.
(2) Exception.--The requirement to use the land
made available under paragraph (1) as the location for
the Air Force Memorial, and the prohibition on the use
of any previously approved location, shall not apply if
the Secretary of Defense determines that it is
physically impracticable to construct the Air Force
Memorial on such land on account of the geological
nature of the land.
(3) Relation to other transfer authority.--Not
later than six months after the date of the enactment
of this Act, the Secretary of Defense shall transfer to
the Secretary of the Army administrative jurisdiction
over the Arlington Naval Annex site made available
under this subsection for construction of the Air Force
Memorial. Nothing in this subsection alters the
deadline for transfer of the remainder of the Arlington
Naval Annex to the Secretary of the Army and
remediation of the transferred land for use as part of
Arlington National Cemetery, as required by section
2881 of the Military Construction Authorization Act for
Fiscal Year 2000.
(c) Site Preparation.--
(1) Preparation for construction.--Upon receipt of
notification from the Foundation that the Foundation
has sufficient funds to commence construction of the
Air Force Memorial, the Secretary of Defense, in
coordination with the Foundation, shall remove Wing 8
of Federal Office Building #2 at the Arlington Naval
Annex, as well as its associated outbuilding and
parking lot, and prepare the land made available under
subsection (b) for construction of the Air Force
Memorial. In addition to demolition and removal, such
site preparation work may include environmental
remediation, installation of water, sewer, telephone,
electrical, and storm water management infrastructure
necessary for the memorial, installation of sidewalks
consistent with the design of the memorial compliant
with the requirements of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), and
the placement of screening berms and mature evergreen
trees between Federal Office Building #2 and the
memorial.
(2) Completion.--Not later than two years after the
date on which the Foundation provides the notification
referred to in paragraph (1), the Secretary of Defense
shall complete the demolition and removal of the
structures and such site preparation work as the
Secretary agrees to undertake under this subsection.
(3) Funding source.--The Secretary of Defense shall
use amounts appropriated for operation and maintenance
to carry out the demolition and removal work and site
preparation described in paragraph (1).
(4) Assistance for displaced agency.--The Secretary
of the Army shall serve as the Executive Agent for the
Ballistic Missile Defense Organization in securing
suitable sites, including, if necessary, sites not
currently owned by the United States, to replace
offices lost as a result of the demolition of Wing 8 of
Federal Office Building #2 at the Arlington Naval
Annex.
(d) Construction of Air Force Memorial.--
(1) Commencement.--Upon the demolition and removal
of the structures required to be removed under
subsection (c)(1), the Secretary of Defense shall
permit the Foundation to commence construction of the
Air Force Memorial on the Arlington Naval Annex site
made available under subsection (b).
(2) Oversight.--The Secretary of Defense shall have
exclusive authority in all matters relating to approval
of the siting and design of the Air Force Memorial on
the Arlington Naval Annex site, and the siting, design,
and construction of the memorial on such site shall not
be subject to the requirements of the Commemorative
Works Act (40 U.S.C. 1001 et seq.).
(3) Effect of failure to commence construction.--
If, within five years after the date of the enactment
of this Act, the Foundation has not commenced
construction of the Air Force Memorial on the Arlington
Naval Annex site made available under subsection (b),
the Secretary of Defense may revoke the authority of
the Foundation to use the site as the location of the
memorial.
(e) Access and Management of Air Force Memorial.--The
Secretary of the Army may enter into a cooperative agreement
with the Foundation to provide for management, maintenance, and
repair of the Air Force Memorial constructed on the Arlington
Naval Annex site made available under subsection (b) and to
guarantee public access to the memorial.
(f) Limitation on Use of Arlington Naval Annex as Site for
Other Memorials or Museums.--Section 2881(b) of the Military
Construction Authorization Act for Fiscal Year 2000 (division B
of Public Law 106-65; 113 Stat. 879) is amended by striking
paragraph (2) and inserting the following new paragraph (2):
``(2) The Secretary of Defense shall reserve not more than
four acres of the Navy Annex property south of the existing
Columbia Pike as a site for--
``(A) a National Military Museum, if such site is
recommended for such purpose by the Commission on the
National Military Museum established under section 2901
and the Secretary of Defense considers such site
compatible with Arlington National Cemetery and the Air
Force Memorial; or
``(B) such other memorials or museums that the
Secretary of Defense considers compatible with
Arlington National Cemetery and the Air Force
Memorial.''.
(g) Preservation of Arlington Ridge Tract.--
(1) General rule.--After the date of the enactment
of this Act, no additional structure or memorials shall
be constructed on the Arlington Ridge tract.
(2) Option for future burials.--Paragraph (1) does
not prohibit the eventual use of a portion of the
Arlington Ridge tract as a location for in-ground
burial sites and columbarium for the burial of
individuals eligible for burial in Arlington National
Cemetery, if the development of such sites is
specifically authorized in a law enacted after the date
of the enactment of this Act.
(h) Land Transfer, Section 29.--
(1) Transfer required.--Not later than 30 days
after the date of the enactment of this Act, the
Secretary of the Interior shall transfer, without
reimbursement, to the Secretary of the Army
administrative jurisdiction over that portion of
Section 29 designated as the interment zone and
consisting of approximately 12 acres. The Secretary of
the Interior shall modify the boundaries of the George
Washington Memorial Parkway as may be necessary to
reflect the land transfer required by this subsection.
(2) Use of transferred land.--The Secretary of the
Army shall use the transferred property for the
development of in-ground burial sites and columbarium
that are designed to meet the contours of Section 29.
(3) Management of remainder.--The Secretary of the
Interior shall manage that portion of Section 29 not
transferred under this subsection in perpetuity to
provide a natural setting and visual buffer for
Arlington House, the Robert E. Lee Memorial.
(4) Repeal of obsolete law.--Section 2821(a) of the
Military Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104-201; 110 Stat. 2791)
is repealed.

SEC. 2864. ESTABLISHMENT OF MEMORIAL TO VICTIMS OF TERRORIST ATTACK ON
PENTAGON RESERVATION AND AUTHORITY TO ACCEPT
MONETARY CONTRIBUTIONS FOR MEMORIAL AND REPAIR OF
PENTAGON.

(a) Memorial Authorized.--The Secretary of Defense may
establish a memorial at the Pentagon Reservation dedicated to
the victims of the terrorist attack on the Pentagon that
occurred on September 11, 2001. The Secretary shall use
necessary amounts in the Pentagon Reservation Maintenance
Revolving Fund established by section 2674(e) of title 10,
United States Code, including amounts deposited in the Fund
under subsection (c), to plan, design, construct, and maintain
the memorial.
(b) Acceptance of Contributions.--The Secretary of Defense
may accept monetary contributions made for the purpose of
assisting in--
(1) the establishment of the memorial to the
victims of the terrorist attack; and
(2) the repair of the damage caused to the Pentagon
Reservation by the terrorist attack.
(c) Deposit of Contributions.--The Secretary of Defense
shall deposit contributions accepted under subsection (b) in
the Pentagon Reservation Maintenance Revolving Fund. The
contributions shall be available for expenditure only for the
purposes specified in subsection (b).

SEC. 2865. REPEAL OF LIMITATION ON COST OF RENOVATION OF PENTAGON
RESERVATION.

Section 2864 of the Military Construction Authorization Act
for Fiscal Year 1997 (division B of Public Law 104-201; 110
Stat. 2806) is repealed.

SEC. 2866. DEVELOPMENT OF UNITED STATES ARMY HERITAGE AND EDUCATION
CENTER AT CARLISLE BARRACKS, PENNSYLVANIA.

(a) Authority To Enter into Agreement.--(1) The Secretary
of the Army may enter into an agreement with the Military
Heritage Foundation, a nonprofit organization, for the design,
construction, and operation of a facility for the United States
Army Heritage and Education Center at Carlisle Barracks,
Pennsylvania (in this section referred to as the ``facility'').
(2) The facility is to be used for curation and storage of
artifacts, research facilities, classrooms, and offices, and
for education and other activities, agreed to by the Secretary,
relating to the heritage of the Army. The facility may also be
used to support such education and training as the Secretary
considers appropriate.
(b) Design and Construction.--The design of the facility
shall be subject to the approval of the Secretary. At the
election of the Secretary, the Secretary may--
(1) accept funds from the Military Heritage
Foundation for the design and construction of the
facility; or
(2) permit the Military Heritage Foundation to
contract for the design and construction of the
facility.
(c) Acceptance of Facility.--(1) Upon satisfactory
completion, as determined by the Secretary, of the facility,
and upon the satisfaction of any and all financial obligations
incident thereto by the Military Heritage Foundation, the
Secretary shall accept the facility from the Military Heritage
Foundation, and all right, title, and interest in and to the
facility shall vest in the United States.
(2) Upon becoming property of the United States, the
facility shall be under the jurisdiction of the Secretary.
(d) Use of Certain Gifts.--(1) Under regulations prescribed
by the Secretary, the Commandant of the Army War College may,
without regard to section 2601 of title 10, United States Code,
accept, hold, administer, invest, and spend any gift, devise,
or bequest of personnel property of a value of $250,000 or less
made to the United States if such gift, devise, or bequest is
for the benefit of the United States Army Heritage and
Education Center.
(2) The Secretary may pay or authorize the payment of any
reasonable and necessary expense in connection with the
conveyance or transfer of a gift, devise, or bequest under this
subsection.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the agreement authorized to be entered into by subsection (a)
as the Secretary considers appropriate to protect the interests
of the United States.

SEC. 2867. EFFECT OF LIMITATION ON CONSTRUCTION OF ROADS OR HIGHWAYS,
MARINE CORPS BASE, CAMP PENDLETON, CALIFORNIA.

Section 2851(a) of the Military Construction Authorization
Act for Fiscal Year 1999 (division B of Public Law 105-261; 112
Stat. 2219) is amended in the first sentence by inserting after
``maintain'' the following: ``, notwithstanding any provision
of State law to the contrary,''.

SEC. 2868. ESTABLISHMENT OF WORLD WAR II MEMORIAL AT ADDITIONAL
LOCATION ON GUAM.

Section 2886 of the Military Construction Authorization Act
for Fiscal Year 2001 (division B of the Spence Act; 114 Stat.
1654A-441) is amended--
(1) in subsection (a), by inserting ``, and on
Federal lands near Yigo,'' after ``Fena Caves'';
(2) in the heading of subsection (b), by striking
``Memorial'' and inserting ``Memorials''; and
(3) in subsections (b) and (c), by striking
``memorial'' each place it appears and inserting
``memorials''.

SEC. 2869. DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, SECURITY,
POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM
LOCAL GOVERNMENT AGENCIES.

(a) Extension.--Subsection (c) of section 816 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103-337; 108 Stat. 2820), as added by section 2873 of the
Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105-261; 112 Stat. 2225), is amended by
striking ``September 30, 2001.'' and inserting ``January 31,
2002, with regard to fire-fighting and police services, and
September 30, 2003, with regard to other services described in
subsection (a).''.
(b) Conforming Amendment.--Section 1206 of the Supplemental
Appropriations Act, 2001 (Public Law 107-20; 115 Stat. 161), is
repealed.

SEC. 2870. REPORT ON FUTURE LAND NEEDS OF UNITED STATES MILITARY
ACADEMY, NEW YORK, AND ADJACENT COMMUNITY.

(a) Report Required.--Not later than February 1, 2002, the
Secretary of the Army shall submit to Congress a report
evaluating the future needs of the United States Military
Academy for lands suitable for use for military training and
the feasibility of making unneeded lands available to the
Village of Highland Falls, New York, through fee simple
conveyance, long-term lease under section 2667 of title 10,
United States Code, or other means.
(b) Consultation.--The Secretary shall prepare the report
in consultation with appropriate officials of the Village of
Highland Falls.

SEC. 2871. NAMING OF PATRICIA C. LAMAR ARMY NATIONAL GUARD READINESS
CENTER, OXFORD, MISSISSIPPI.

The Oxford Army National Guard Readiness Center, Oxford,
Mississippi, shall be known and designated as the ``Patricia C.
Lamar Army National Guard Readiness Center''. Any reference to
that readiness center in any law, regulation, map, document,
record, or other paper of the United States shall be considered
to be a reference to the Patricia C. Lamar Army National Guard
Readiness Center.

TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

SEC. 2901. SHORT TITLE.

This title may be cited as the ``Fort Irwin Military Land
Withdrawal Act of 2001''.

SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS FOR NATIONAL TRAINING
CENTER.

(a) Withdrawal.--Subject to valid existing rights and
except as otherwise provided in this title, all public lands
and interests in lands described in subsection (c) are hereby
withdrawn from all forms of appropriation under the general
land laws, including the mining laws and mineral and geothermal
leasing laws, and jurisdiction over such lands and interests in
lands withdrawn and reserved by this title is hereby
transferred to the Secretary of the Army.
(b) Reservation.--The lands withdrawn under subsection (a)
are reserved for use by the Secretary of the Army for the
following purposes:
(1) The conduct of combined arms military training
at the National Training Center.
(2) The development and testing of military
equipment at the National Training Center.
(3) Other defense-related purposes consistent with
the purposes specified in paragraphs (1) and (2).
(4) Conservation and related research purposes.
(c) Land Description.--The public lands and interests in
lands withdrawn and reserved by this section comprise
approximately 110,000 acres in San Bernardino County,
California, as generally depicted as ``Proposed Withdrawal
Land'' on the map entitled ``National Training Center--Proposed
Withdrawal of Public Lands for Training Purposes'', dated
September 21, 2000, and filed in accordance with section 2903.
(d) Changes in Use.--The Secretary of the Army shall
consult with the Secretary of the Interior before using the
lands withdrawn and reserved by this section for any purpose
other than those purposes identified in subsection (b).
(e) Indian Tribes.--Nothing in this title shall be
construed as altering any rights reserved for tribal use by
treaty or Federal law. The Secretary of the Army shall consult
with federally recognized Indian tribes in the vicinity of the
lands withdrawn under subsection (a) before taking action
affecting rights or cultural resources protected by treaty or
Federal law.

SEC. 2903. MAP AND LEGAL DESCRIPTION.

(a) Preparation of Map and Legal Description.--As soon as
practicable after the date of the enactment of this Act, the
Secretary of the Interior shall--
(1) publish in the Federal Register a notice
containing the legal description of the lands withdrawn
and reserved by this title; and
(2) file a map and legal description of the lands
withdrawn and reserved by this title with the Committee
on Energy and Natural Resources of the Senate and the
Committee on Resources of the House of Representatives.
(b) Legal Effect.--The map and legal description shall have
the same force and effect as if included in this title, except
that the Secretary of the Interior may correct clerical and
typographical errors in the map and legal description.
(c) Availability.--Copies of the map and the legal
description shall be available for public inspection in the
following offices:
(1) The offices of the California State Director,
California Desert District Office, and Riverside and
Barstow Field Offices of the Bureau of Land Management.
(2) The Office of the Commander, National Training
Center and Fort Irwin.
(d) Costs.--The Secretary of the Army shall reimburse the
Secretary of the Interior for the costs incurred by the
Secretary of the Interior in implementing this section.

SEC. 2904. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

(a) General Management Authority.--During the period of the
withdrawal and reservation made by this title, the Secretary of
the Army shall manage the lands withdrawn and reserved by this
title for the purposes specified in section 2902.
(b) Temporary Prohibition on Certain Use.--Military use of
the lands withdrawn and reserved by this title that result in
ground disturbance, as determined by the Secretary of the Army
and the Secretary of the Interior, are prohibited until the
Secretary of the Army and the Secretary of the Interior certify
to Congress that there has been full compliance with respect to
such lands with the appropriate provisions of this title, the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), and other applicable laws.
(c) Access Restrictions.--
(1) In general.--If the Secretary of the Army
determines that military operations, public safety, or
national security require the closure to the public of
any road, trail, or other portion of the lands
withdrawn and reserved by this title, the Secretary may
take such action as the Secretary determines necessary
or desirable to effect and maintain such closure.
(2) Limitation.--Any closure under paragraph (1)
shall be limited to the minimum areas and periods that
the Secretary of the Army determines are required for
the purposes specified in such paragraph.
(3) Notice.--Immediately preceding and during any
closure under paragraph (1), the Secretary of the Army
shall post appropriate warning notices and take other
steps, as necessary, to notify the public of the
closure.
(d) Integrated Natural Resources Management Plan.--The
Secretary of the Army shall prepare and implement, in
accordance with title I of the Sikes Act (16 U.S.C. 670 et
seq.), an integrated natural resources management plan for the
lands withdrawn and reserved by this title. In addition to the
elements required under the Sikes Act, the integrated natural
resources management plan shall include the following:
(1) A requirement that any hunting, fishing, and
trapping on the lands withdrawn and reserved by this
title be conducted in accordance with section 2671 of
title 10, United States Code.
(2) A requirement that the Secretary of the Army
take necessary actions to prevent, suppress, and manage
brush and range fires occurring within the boundaries
of Fort Irwin and brush and range fires occurring
outside the boundaries of Fort Irwin that result from
military activities at Fort Irwin.
(e) Firefighting.--Notwithstanding section 2465 of title
10, United States Code, the Secretary of the Army may obligate
funds appropriated or otherwise available to the Secretary of
the Army to enter into a memorandum of understanding,
cooperative agreement, or contract for fire fighting services
to carry out the requirements of subsection (d)(2). The
Secretary of the Army shall reimburse the Secretary of the
Interior for costs incurred by the Secretary of the Interior to
assist in carrying out the requirements of such subsection.
(f) Consultation With National Aeronautics and Space
Administration.--In preparing and implementing any plan,
report, assessment, survey, opinion, or impact statement
regarding the lands withdrawn and reserved by this title, the
Secretary of the Army shall consult with the Administrator of
the National Aeronautics and Space Administration whenever
proposed Army actions have the potential to affect the
operations or the environmental management of the Goldstone
Deep Space Communications Complex. The requirement for
consultation shall apply, at a minimum, to the following:
(1) Plans for military training, military equipment
testing, or related activities that have the potential
of impacting communications between Goldstone Deep
Space Communications Complex and space flight missions
or other transmission or receipt of signals from outer
space by the Goldstone Deep Space Communications
Complex.
(2) The integrated natural resources management
plan required by subsection (d).
(3) The West Mojave Coordinated Management Plan
referred to in section 2907.
(4) Any document prepared in compliance with the
Endangered Species Act of 1973, the National
Environmental Policy Act of 1969, and other laws
applicable to the lands withdrawn and reserved by this
title.
(g) Use of Mineral Materials.--Notwithstanding any other
provision of this title or the Act of July 31, 1947 (commonly
known as the Materials Act of 1947; 30 U.S.C. 601 et seq.), the
Secretary of the Army may use sand, gravel, or similar mineral
material resources of the type subject to disposition under
such Act from the lands withdrawn and reserved by this title if
the use of such resources is required for construction needs of
the National Training Center.

SEC. 2905. WATER RIGHTS.

(a) No Reserved Water Right Established.--Nothing in this
title shall be construed--
(1) to establish a reservation in favor of the
United States with respect to any water or water right
on the lands withdrawn and reserved by this title; or
(2) to authorize the appropriation of water on such
lands by the United States after the date of the
enactment of this Act, except in accordance with
applicable State law.
(b) Effect on Previously Acquired or Reserved Water
Rights.--This section shall not be construed to affect any
water rights acquired or reserved by the United States before
the date of the enactment of this Act, and the Secretary of the
Army may exercise any such previously acquired or reserved
water rights.

SEC. 2906. ENVIRONMENTAL COMPLIANCE AND ENVIRONMENTAL RESPONSE
REQUIREMENTS.

(a) Agreements Concerning the Environment and Public
Health.--The Secretary of the Army and the Secretary of the
Interior shall enter into such agreements as are necessary,
appropriate, and in the public interest to carry out the
purposes of this title.
(b) Relation to Other Environmental Laws.--Nothing in this
title shall relieve, and no action taken under this title may
relieve, the Secretary of the Army or the Secretary of the
Interior, or any other person from any liability or other
obligation under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.), the Resource Conservation and Recovery Act of 1976 (42
U.S.C. 6901 et seq.) or any other Federal or State law.

SEC. 2907. WEST MOJAVE COORDINATED MANAGEMENT PLAN.

(a) Completion.--The Secretary of the Interior shall make
every effort to complete the West Mojave Coordinated Management
Plan not later than two years after the date of the enactment
of this Act.
(b) Consideration of Withdrawal and Reservation Impacts.--
The Secretary of the Interior shall ensure that the West Mojave
Coordinated Management Plan considers the impacts of the
availability or nonavailability of the lands withdrawn and
reserved by this title on the plan as a whole.
(c) Consultation.--The Secretary of the Interior shall
consult with the Secretary of the Army and the Administrator of
the National Aeronautics and Space Administration in the
development of the West Mojave Coordinated Management Plan.

SEC. 2908. RELEASE OF WILDERNESS STUDY AREAS.

Congress hereby finds and directs that lands withdrawn and
reserved by this title have been adequately studied for
wilderness designation pursuant to section 603(c) of the
Federal Land Policy and Management Act of 1976 (43 U.S.C.
1782(c)), and are no longer subject to the requirement of such
section pertaining to the management of wilderness study areas
in a manner that does not impair the suitability of such areas
for preservation as wilderness.

SEC. 2909. TRAINING ACTIVITY SEPARATION FROM UTILITY CORRIDORS.

(a) Required Separation.--All military ground activity
training on the lands withdrawn and reserved by this title
shall remain at least 500 meters from any utility system, in
existence as of the date of the enactment of this Act, in
Utility Planning Corridor D, as described in the California
Desert Conservation Area Plan, dated 1980 and subsequently
amended.
(b) Exception.--Subsection (a) does not modify the use of
any lands used, as of the date of the enactment of this Act, by
the National Training Center for training or alter any right of
access granted by interagency agreement.

SEC. 2910. DURATION OF WITHDRAWAL AND RESERVATION.

(a) Termination Date.--Unless extended pursuant to section
2911, unless relinquishment is postponed by the Secretary of
the Interior pursuant to section 2912(b), and except as
provided in section 2912(d), the withdrawal and reservation
made by this title shall terminate 25 years after the date of
the enactment of this Act.
(b) Limitation on Subsequent Availability for
Appropriation.--At the time of termination of the withdrawal
and reservation made by this title, the previously withdrawn
lands shall not be open to any forms of appropriation under the
general land laws, including the mining laws and the mineral
and geothermal leasing laws, until the Secretary of the
Interior publishes in the Federal Register an appropriate order
specifying the date upon which such lands shall be restored to
the public domain and opened.

SEC. 2911. EXTENSION OF INITIAL WITHDRAWAL AND RESERVATION.

(a) Notification Requirement.--Not later than three years
before the termination date specified in section 2910(a), the
Secretary of the Army shall notify Congress and the Secretary
of the Interior whether the Army will have a continuing
military need, beyond the termination date, for all or any
portion of the lands withdrawn and reserved by this title.
(b) Process for Extension of Withdrawal and Reservation.--
(1) Consultation and application.--If the Secretary
of the Army determines that there will be a continuing
military need after the termination date for any of the
lands withdrawn and reserved by this title, the
Secretary of the Army shall--
(A) consult with the Secretary of the
Interior concerning any adjustments to be made
to the extent of, or to the allocation of
management responsibility for, such needed
lands; and
(B) file with the Secretary of the
Interior, within one year after the notice
required by subsection (a), an application for
extension of the withdrawal and reservation of
such needed lands.
(2) Application requirements.--Notwithstanding any
general procedure of the Department of the Interior for
processing Federal land withdrawals, an application for
extension of the land withdrawal and reservation made
by this title shall be considered to be complete if the
application includes the information required by
section 3 of Public Law 85-337 (commonly known as the
Engle Act; 43 U.S.C. 157), except that no information
shall be required concerning the use or development of
mineral, timber, or grazing resources unless, and only
to the extent, the Secretary of the Army proposes to
use or develop such resources during the period of
extension.
(c) Submission of Proposed Extension to Congress.--The
Secretary of the Interior and the Secretary of the Army may
submit to Congress a legislative proposal for the extension of
the withdrawal and reservation made by this title. The
legislative proposal shall be accompanied by an appropriate
analysis of environmental impacts associated with the proposal,
as required by section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

SEC. 2912. TERMINATION AND RELINQUISHMENT.

(a) Notice of Termination.--During the first 22 years of
the withdrawal and reservation made by this title, if the
Secretary of the Army determines that there is no continuing
military need for the lands withdrawn and reserved by this
title, or any portion of such lands, the Secretary of the Army
shall submit to the Secretary of the Interior a notice of
intent to relinquish jurisdiction over such lands. The notice
shall specify the proposed date of relinquishment.
(b) Acceptance of Jurisdiction.--The Secretary of the
Interior may accept jurisdiction over any lands covered by a
notice under subsection (a) if the Secretary of the Interior
determines that the Secretary of the Army has taken or will
take all environmental response and restoration activities
required under applicable laws and regulations with respect to
such lands.
(c) Notice of Acceptance.--If the Secretary of the Interior
decides to accept jurisdiction over lands covered by a notice
under subsection (a) before the termination date of the
withdrawal and reservation, the Secretary shall publish in the
Federal Register an appropriate order that shall--
(1) terminate the withdrawal and reservation of
such lands under this title;
(2) constitute official acceptance of
administrative jurisdiction over the lands by the
Secretary of the Interior; and
(3) state the date upon which such lands shall be
opened to the operation of the general land laws,
including the mining laws and the mineral and
geothermal leasing laws, if appropriate.
(d) Retained Army Jurisdiction.--Notwithstanding the
termination date specified in section 2910, unless and until
the Secretary of the Interior accepts jurisdiction of land
proposed for relinquishment pursuant to this section, such land
shall remain withdrawn and reserved for the Secretary of the
Army for the limited purposes of environmental response and
restoration actions under section 2906 and continued land
management responsibilities pursuant to the integrated natural
resources management plan required under section 2904, until
such environmental response and restoration activities on those
lands are completed.
(e) Severability of Functions.--All functions described
under this section, including transfers, relinquishments,
extensions, and other determinations, may be made on a parcel-
by-parcel basis.

SEC. 2913. DELEGATION OF AUTHORITY.

(a) Secretary of the Army.--The Secretary of the Army may
delegate to officials in the Department of the Army such
functions as the Secretary of the Army may determine
appropriate to carry out this title.
(b) Secretary of the Interior.--The functions of the
Secretary of the Interior under this title may be delegated,
except that the order described in section 2912(c) may be
approved and signed only by the Secretary of the Interior, the
Deputy Secretary of the Interior, or an Assistant Secretary of
the Department of the Interior.

TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS AND
PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX

SEC. 3001. AUTHORIZATION OF ROUND OF REALIGNMENTS AND CLOSURES OF
MILITARY INSTALLATIONS IN 2005.

The Defense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is
amended by adding at the end the following new section:

``SEC. 2912. 2005 ROUND OF REALIGNMENTS AND CLOSURES OF MILITARY
INSTALLATIONS.

``(a) Force-Structure Plan and Infrastructure Inventory.--
``(1) Preparation and submission.--As part of the
budget justification documents submitted to Congress in
support of the budget for the Department of Defense for
fiscal year 2005, the Secretary shall include the
following:
``(A) A force-structure plan for the Armed
Forces based on an assessment by the Secretary
of the probable threats to the national
security during the 20-year period beginning
with fiscal year 2005, the probable end-
strength levels and major military force units
(including land force divisions, carrier and
other major combatant vessels, air wings, and
other comparable units) needed to meet these
threats, and the anticipated levels of funding
that will be available for national defense
purposes during such period.
``(B) A comprehensive inventory of military
installations world-wide for each military
department, with specifications of the number
and type of facilities in the active and
reserve forces of each military department.
``(2) Relationship of plan and inventory.--Using
the force-structure plan and infrastructure inventory
prepared under paragraph (1), the Secretary shall
prepare (and include as part of the submission of such
plan and inventory) the following:
``(A) A description of the infrastructure
necessary to support the force structure
described in the force-structure plan.
``(B) A discussion of categories of excess
infrastructure and infrastructure capacity.
``(C) An economic analysis of the effect of
the closure or realignment of military
installations to reduce excess infrastructure.
``(3) Special considerations.--In determining the
level of necessary versus excess infrastructure under
paragraph (2), the Secretary shall consider the
following:
``(A) The anticipated continuing need for
and availability of military installations
outside the United States, taking into account
current restrictions on the use of military
installations outside the United States and the
potential for future prohibitions or
restrictions on the use of such military
installations.
``(B) Any efficiencies that may be gained
from joint tenancy by more than one branch of
the Armed Forces at a military installation.
``(4) Revision.--The Secretary may revise the
force-structure plan and infrastructure inventory. If
the Secretary makes such a revision, the Secretary
shall submit the revised plan or inventory to Congress
as part of the budget justification documents submitted
to Congress for fiscal year 2006.
``(b) Certification of Need for Further Closures and
Realignments.--
``(1) Certification required.--On the basis of the
force-structure plan and infrastructure inventory
prepared under subsection (a) and the descriptions and
economic analysis prepared under such subsection, the
Secretary shall include as part of the submission of
the plan and inventory--
``(A) a certification regarding whether the
need exists for the closure or realignment of
additional military installations; and
``(B) if such need exists, a certification
that the additional round of closures and
realignments would result in annual net savings
for each of the military departments beginning
not later than fiscal year 2011.
``(2) Effect of failure to certify.--If the
Secretary does not include the certifications referred
to in paragraph (1), the process by which military
installations may be selected for closure or
realignment under this part in 2005 shall be
terminated.
``(c) Comptroller General Evaluation.--
``(1) Evaluation required.--If the certification is
provided under subsection (b), the Comptroller General
shall prepare an evaluation of the following:
``(A) The force-structure plan and
infrastructure inventory prepared under
subsection (a) and the final selection criteria
prepared under section 2913, including an
evaluation of the accuracy and analytical
sufficiency of such plan, inventory, and
criteria.
``(B) The need for the closure or
realignment of additional military
installations.
``(2) Submission.--The Comptroller General shall
submit the evaluation to Congress not later than 60
days after the date on which the force-structure plan
and infrastructure inventory are submitted to Congress.
``(d) Authorization of Additional Round; Commission.--
``(1) Appointment of commission.--Subject to the
certifications required under subsection (b), the
President may commence an additional round for the
selection of military installations for closure and
realignment under this part in 2005 by transmitting to
the Senate, not later than March 15, 2005, nominations
pursuant to section 2902(c) for the appointment of new
members to the Defense Base Closure and Realignment
Commission.
``(2) Effect of failure to nominate.--If the
President does not transmit to the Senate the
nominations for the Commission by March 15, 2005, the
process by which military installations may be selected
for closure or realignment under this part in 2005
shall be terminated.
``(3) Members.--Notwithstanding section 2902(c)(1),
the Commission appointed under the authority of this
subsection shall consist of nine members.
``(4) Terms; meetings; termination.--
Notwithstanding subsections (d), (e)(1), and (l) of
section 2902, the Commission appointed under the
authority of this subsection shall meet during calendar
year 2005 and shall terminate on April 15, 2006.
``(5) Funding.--If no funds are appropriated to the
Commission by the end of the second session of the
108th Congress for the activities of the Commission in
2005, the Secretary may transfer to the Commission for
purposes of its activities under this part in that year
such funds as the Commission may require to carry out
such activities. The Secretary may transfer funds under
the preceding sentence from any funds available to the
Secretary. Funds so transferred shall remain available
to the Commission for such purposes until expended.''.

SEC. 3002. SELECTION CRITERIA.

The Defense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is
amended by inserting after section 2912, as added by section
3001, the following new section:

``SEC. 2913. SELECTION CRITERIA FOR 2005 ROUND.

``(a) Preparation of Proposed Selection Criteria.--
``(1) In general.--Not later than December 31,
2003, the Secretary shall publish in the Federal
Register and transmit to the congressional defense
committees the criteria proposed to be used by the
Secretary in making recommendations for the closure or
realignment of military installations inside the United
States under this part in 2005.
``(2) Public comment.--The Secretary shall provide
an opportunity for public comment on the proposed
criteria for a period of at least 30 days and shall
include notice of that opportunity in the publication
required under this subsection.
``(b) Military Value as Primary Consideration.--The
selection criteria prepared by the Secretary shall ensure that
military value is the primary consideration in the making of
recommendations for the closure or realignment of military
installations under this part in 2005. Military value shall
include at a minimum the following:
``(1) Preservation of training areas suitable for
maneuver by ground, naval, or air forces to guarantee
future availability of such areas to ensure the
readiness of the Armed Forces.
``(2) Preservation of military installations in the
United States as staging areas for the use of the Armed
Forces in homeland defense missions.
``(3) Preservation of military installations
throughout a diversity of climate and terrain areas in
the United States for training purposes.
``(4) The impact on joint warfighting, training,
and readiness.
``(5) Contingency, mobilization, and future total
force requirements at both existing and potential
receiving locations to support operations and training.
``(c) Special Considerations.--The selection criteria for
military installations shall also address at a minimum the
following:
``(1) The extent and timing of potential costs and
savings, including the number of years, beginning with
the date of completion of the closure or realignment,
for the savings to exceed the costs.
``(2) The economic impact on existing communities
in the vicinity of military installations.
``(3) The ability of both existing and potential
receiving communities' infrastructure to support
forces, missions, and personnel.
``(4) The impact of costs related to potential
environmental restoration, waste management, and
environmental compliance activities.
``(d) Effect on Department and Other Agency Costs.--Any
selection criteria proposed by the Secretary relating to the
cost savings or return on investment from the proposed closure
or realignment of military installations shall take into
account the effect of the proposed closure or realignment on
the costs of any other activity of the Department of Defense or
any other Federal agency that may be required to assume
responsibility for activities at the military installations.
``(e) Final Selection Criteria.--Not later than February
16, 2004, the Secretary shall publish in the Federal Register
and transmit to the congressional defense committees the final
criteria to be used in making recommendations for the closure
or realignment of military installations inside the United
States under this part in 2005. Such criteria shall be the
final criteria to be used, along with the force-structure plan
and infrastructure inventory referred to in section 2912, in
making such recommendations unless disapproved by an Act of
Congress enacted on or before March 15, 2004.
``(f) Relation to Criteria for Earlier Rounds.--Section
2903(b), and the selection criteria prepared under such
section, shall not apply with respect to the process of making
recommendations for the closure or realignment of military
installations in 2005.''.

SEC. 3003. REVISED PROCEDURES FOR MAKING RECOMMENDATIONS FOR
REALIGNMENTS AND CLOSURES AND COMMISSION
CONSIDERATION OF RECOMMENDATIONS.

The Defense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is
amended by inserting after section 2913, as added by section
3002, the following new section:

``SEC. 2914. SPECIAL PROCEDURES FOR MAKING RECOMMENDATIONS FOR
REALIGNMENTS AND CLOSURES FOR 2005 ROUND;
COMMISSION CONSIDERATION OF RECOMMENDATIONS.

``(a) Recommendations Regarding Closure or Realignment of
Military Installations.--If the Secretary makes the
certifications required under section 2912(b), the Secretary
shall publish in the Federal Register and transmit to the
congressional defense committees and the Commission, not later
than May 16, 2005, a list of the military installations inside
the United States that the Secretary recommends for closure or
realignment on the basis of the force-structure plan and
infrastructure inventory prepared by the Secretary under
section 2912 and the final selection criteria prepared by the
Secretary under section 2913.
``(b) Preparation of Recommendations.--
``(1) In general.--The Secretary shall comply with
paragraphs (2) through (6) of section 2903(c) in
preparing and transmitting the recommendations under
this section. However, paragraph (6) of section 2903(c)
relating to submission of information to Congress shall
be deemed to require such submission within 48 hours.
``(2) Consideration of local government views.--(A)
In making recommendations to the Commission in 2005,
the Secretary shall consider any notice received from a
local government in the vicinity of a military
installation that the government would approve of the
closure or realignment of the installation.
``(B) Notwithstanding the requirement in
subparagraph (A), the Secretary shall make the
recommendations referred to in that subparagraph based
on the force-structure plan, infrastructure inventory,
and final selection criteria otherwise applicable to
such recommendations.
``(C) The recommendations shall include a statement
of the result of the consideration of any notice
described in subparagraph (A) that is received with
respect to a military installation covered by such
recommendations. The statement shall set forth the
reasons for the result.
``(c) Recommendations to Retain Bases in Inactive Status.--
In making recommendations for the closure or realignment of
military installations, the Secretary may recommend that an
installation be placed in an inactive status if the Secretary
determines that--
``(1) the installation may be needed in the future
for national security purposes; or
``(2) retention of the installation is otherwise in
the interest of the United States.
``(d) Commission Review and Recommendations.--
``(1) In general.--Except as provided in this
subsection, section 2903(d) shall apply to the
consideration by the Commission of the recommendations
transmitted by the Secretary in 2005. The Commission's
report containing its findings and conclusions, based
on a review and analysis of the Secretary's
recommendations, shall be transmitted to the President
not later than September 8, 2005.
``(2) Availability of recommendations to
congress.--After September 8, 2005, the Commission
shall promptly provide, upon request, to any Member of
Congress information used by the Commission in making
its recommendations.
``(3) Limitations on authority to add to closure or
realignment lists.--The Commission may not consider
making a change in the recommendations of the Secretary
that would add a military installation to the
Secretary's list of installations recommended for
closure or realignment unless, in addition to the
requirements of section 2903(d)(2)(C)--
``(A) the Commission provides the Secretary
with at least a 15-day period, before making
the change, in which to submit an explanation
of the reasons why the installation was not
included on the closure or realignment list by
the Secretary; and
``(B) the decision to add the installation
for Commission consideration is supported by at
least seven members of the Commission.
``(4) Testimony by secretary.--The Commission shall
invite the Secretary to testify at a public hearing, or
a closed hearing if classified information is involved,
on any proposed change by the Commission to the
Secretary's recommendations.
``(5) Comptroller general report.--The Comptroller
General report required by section 2903(d)(5)(B)
analyzing the recommendations of the Secretary and the
selection process in 2005 shall be transmitted to the
congressional defense committees not later than July 1,
2005.
``(e) Review by the President.--
``(1) In general.--Except as provided in this
subsection, section 2903(e) shall apply to the review
by the President of the recommendations of the
Commission under this section, and the actions, if any,
of the Commission in response to such review, in 2005.
The President shall review the recommendations of the
Secretary and the recommendations contained in the
report of the Commission under subsection (d) and
prepare a report, not later than September 23, 2005,
containing the President's approval or disapproval of
the Commission's recommendations.
``(2) Commission reconsideration.--If the
Commission prepares a revised list of recommendations
under section 2903(e)(3) in 2005 in response to the
review of the President in that year under paragraph
(1), the Commission shall transmit the revised list to
the President not later than October 20, 2005.
``(3) Effect of failure to transmit.--If the
President does not transmit to Congress an approval and
certification described in paragraph (2) or (4) of
section 2903(e) by November 7, 2005, the process by
which military installations may be selected for
closure or realignment under this part in 2005 shall be
terminated.
``(4) Effect of transmittal.--A report of the
President under this subsection containing the
President's approval of the Commission's
recommendations is deemed to be a report under section
2903(e) for purposes of sections 2904 and 2908.''.

SEC. 3004. LIMITATIONS ON PRIVATIZATION IN PLACE.

Section 2904(a) of the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) is amended--
(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by inserting after paragraph (2) the following
new paragraph (3):
``(3) carry out the privatization in place of a
military installation recommended for closure or
realignment by the Commission in the 2005 report only
if privatization in place is a method of closure or
realignment of the military installation specified in
the recommendations of the Commission in such report
and is determined by the Commission to be the most
cost-effective method of implementation of the
recommendation;''.

SEC. 3005. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

(a) Establishment.--The Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note) is amended by inserting after
section 2906 the following new section:

``SEC. 2906A. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

``(a) In General.--(1) If the Secretary makes the
certifications required under section 2912(b), there shall be
established on the books of the Treasury an account to be known
as the `Department of Defense Base Closure Account 2005' (in
this section referred to as the `Account'). The Account shall
be administered by the Secretary as a single account.
``(2) There shall be deposited into the Account--
``(A) funds authorized for and appropriated to the
Account;
``(B) any funds that the Secretary may, subject to
approval in an appropriation Act, transfer to the
Account from funds appropriated to the Department of
Defense for any purpose, except that such funds may be
transferred only after the date on which the Secretary
transmits written notice of, and justification for,
such transfer to the congressional defense committees;
and
``(C) except as provided in subsection (d),
proceeds received from the lease, transfer, or disposal
of any property at a military installation that is
closed or realigned under this part pursuant to a
closure or realignment the date of approval of which is
after January 1, 2005.
``(3) The Account shall be closed at the time and in the
manner provided for appropriation accounts under section 1555
of title 31, United States Code. Unobligated funds which remain
in the Account upon closure shall be held by the Secretary of
the Treasury until transferred by law after the congressional
defense committees receive the final report transmitted under
subsection (c)(2).
``(b) Use of Funds.--(1) The Secretary may use the funds in
the Account only for the purposes described in section 2905
with respect to military installations the date of approval of
closure or realignment of which is after January 1, 2005.
``(2) When a decision is made to use funds in the Account
to carry out a construction project under section 2905(a) and
the cost of the project will exceed the maximum amount
authorized by law for a minor military construction project,
the Secretary shall notify in writing the congressional defense
committees of the nature of, and justification for, the project
and the amount of expenditures for such project. Any such
construction project may be carried out without regard to
section 2802(a) of title 10, United States Code.
``(c) Reports.--(1)(A) No later than 60 days after the end
of each fiscal year in which the Secretary carries out
activities under this part using amounts in the Account, the
Secretary shall transmit a report to the congressional defense
committees of the amount and nature of the deposits into, and
the expenditures from, the Account during such fiscal year and
of the amount and nature of other expenditures made pursuant to
section 2905(a) during such fiscal year.
``(B) The report for a fiscal year shall include the
following:
``(i) The obligations and expenditures from the
Account during the fiscal year, identified by
subaccount, for each military department and Defense
Agency.
``(ii) The fiscal year in which appropriations for
such expenditures were made and the fiscal year in
which funds were obligated for such expenditures.
``(iii) Each military construction project for
which such obligations and expenditures were made,
identified by installation and project title.
``(iv) A description and explanation of the extent,
if any, to which expenditures for military construction
projects for the fiscal year differed from proposals
for projects and funding levels that were included in
the justification transmitted to Congress under section
2907(1), or otherwise, for the funding proposals for
the Account for such fiscal year, including an
explanation of--
``(I) any failure to carry out military
construction projects that were so proposed;
and
``(II) any expenditures for military
construction projects that were not so
proposed.
``(2) No later than 60 days after the termination of the
authority of the Secretary to carry out a closure or
realignment under this part with respect to military
installations the date of approval of closure or realignment of
which is after January 1, 2005, and no later than 60 days after
the closure of the Account under subsection (a)(3), the
Secretary shall transmit to the congressional defense
committees a report containing an accounting of--
``(A) all the funds deposited into and expended
from the Account or otherwise expended under this part
with respect to such installations; and
``(B) any amount remaining in the Account.
``(d) Disposal or Transfer of Commissary Stores and
Property Purchased With Nonappropriated Funds.--(1) If any real
property or facility acquired, constructed, or improved (in
whole or in part) with commissary store funds or
nonappropriated funds is transferred or disposed of in
connection with the closure or realignment of a military
installation under this part the date of approval of closure or
realignment of which is after January 1, 2005, a portion of the
proceeds of the transfer or other disposal of property on that
installation shall be deposited in the reserve account
established under section 204(b)(7)(C) of the Defense
Authorization Amendments and Base Closure and Realignment Act
(10 U.S.C. 2687 note).
``(2) The amount so deposited shall be equal to the
depreciated value of the investment made with such funds in the
acquisition, construction, or improvement of that particular
real property or facility. The depreciated value of the
investment shall be computed in accordance with regulations
prescribed by the Secretary.
``(3) The Secretary may use amounts in the reserve account,
without further appropriation, for the purpose of acquiring,
constructing, and improving--
``(A) commissary stores; and
``(B) real property and facilities for
nonappropriated fund instrumentalities.
``(4) In this subsection, the terms `commissary store
funds', `nonappropriated funds', and `nonappropriated fund
instrumentality' shall have the meaning given those terms in
section 2906(d)(4).
``(e) Account Exclusive Source of Funds for Environmental
Restoration Projects.--Except as provided in section 2906(e)
with respect to funds in the Department of Defense Base Closure
Account 1990 under section 2906 and except for funds deposited
into the Account under subsection (a), funds appropriated to
the Department of Defense may not be used for purposes
described in section 2905(a)(1)(C). The prohibition in this
subsection shall expire upon the closure of the Account under
subsection (a)(3).''.
(b) Conforming Amendments.--Section 2906 of that Act is
amended--
(1) in subsection (a)(2)(C), by inserting ``the
date of approval of closure or realignment of which is
before January 1, 2005'' after ``under this part'';
(2) in subsection (b)(1), by inserting ``with
respect to military installations the date of approval
of closure or realignment of which is before January 1,
2005,'' after ``section 2905'';
(3) in subsection (c)(2)--
(A) in the matter preceding subparagraph
(A), by inserting ``with respect to military
installations the date of approval of closure
or realignment of which is before January 1,
2005,'' after ``under this part''; and
(B) in subparagraph (A), by inserting
``with respect to such installations'' after
``under this part'';
(4) in subsection (d)(1), by inserting ``the date
of approval of closure or realignment of which is
before January 1, 2005'' after ``under this part''; and
(5) in subsection (e), by striking ``Except for''
and inserting ``Except as provided in section 2906A(e)
with respect to funds in the Department of Defense Base
Closure Account 2005 under section 2906A and except
for''.
(c) Clerical Amendment.--The section heading of section
2906 of that Act is amended by striking ``account'' and
inserting ``Department of Defense Base Closure Account 1990''.

SEC. 3006. IMPLEMENTATION OF CLOSURE AND REALIGNMENT DECISIONS.

(a) Requirement to Receive Fair Market Value.--Section
2905(b)(4)(B) of that Act is amended--
(1) in the first sentence, by striking ``shall be
without consideration'' in the matter preceding clause
(i) and inserting ``may be without consideration''; and
(2) by inserting after ``(B)'' the following new
sentence: ``With respect to military installations for
which the date of approval of closure or realignment is
after January 1, 2005, the Secretary shall seek to
obtain consideration in connection with any transfer
under this paragraph of property located at the
installation in an amount equal to the fair market
value of the property, as determined by the
Secretary.''.
(b) Transfers in Connection with Payment of Environmental
Remediation.--Section 2905(e) of that Act is amended--
(1) in paragraph (1)(B), by adding at the end the
following new sentence: ``The real property and
facilities referred to in subparagraph (A) are also the
real property and facilities located at an installation
approved for closure or realignment under this part
after 2001 that are available for purposes other than
to assist the homeless.'';
(2) in paragraph (2)(A), by striking ``to be paid
by the recipient of the property or facilities'' and
inserting ``otherwise to be paid by the Secretary with
respect to the property or facilities'';
(3) by striking paragraph (6);
(4) by redesignating paragraphs (3), (4), and (5)
as paragraphs (4), (5), (6), respectively; and
(5) by inserting after paragraph (2) the following
new paragraph (3):
``(3) In the case of property or facilities covered by a
certification under paragraph (2)(A), the Secretary may pay the
recipient of such property or facilities an amount equal to the
lesser of--
``(A) the amount by which the costs incurred by the
recipient of such property or facilities for all
environmental restoration, waste, management, and
environmental compliance activities with respect to
such property or facilities exceed the fair market
value of such property or facilities as specified in
such certification; or
``(B) the amount by which the costs (as determined
by the Secretary) that would otherwise have been
incurred by the Secretary for such restoration,
management, and activities with respect to such
property or facilities exceed the fair market value of
such property or facilities as so specified.''.
(c) Scope of Indemnification of Transferees in Connection
With Payment of Environmental Remediation.--Paragraph (6) of
section 2905(e) of that Act, as redesignated by subsection
(b)(4), is amended by inserting before the period the
following: ``, except in the case of releases or threatened
releases not disclosed pursuant to paragraph (4)''.

SEC. 3007. TECHNICAL AND CLARIFYING AMENDMENTS.

(a) Relationship to Other Base Closure Authority.--Section
2909(a) of the Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note) is amended by striking ``the date of the enactment of
this Act and ending on December 31, 1995,'' and inserting
``November 5, 1990, and ending on April 15, 2006,''.
(b) Commencement of Period for Notice of Interest in
Property for Homeless.--Section 2905(b)(7)(D)(ii)(I) of that
Act is amended by striking ``that date'' and inserting ``the
date of publication of such determination in a newspaper of
general circulation in the communities in the vicinity of the
installation under subparagraph (B)(i)(IV)''.
(c) Committee Name.--That Act is further amended by
striking ``National Security'' and inserting ``Armed Services''
each place it appears in the following provisions:
(A) Section 2902(e)(2)(B)(ii).
(B) Section 2908(b).
(d) Other Clarifying Amendments.--(1) That Act is further
amended by inserting ``or realignment'' after ``closure'' each
place it appears in the following provisions:
(A) Section 2905(b)(3).
(B) Section 2905(b)(5).
(C) Section 2905(b)(7)(B)(iv).
(D) Section 2905(b)(7)(N).
(E) Section 2910(10)(B).
(2) That Act is further amended by inserting ``or
realigned'' after ``closed'' each place it appears in the
following provisions:
(A) Section 2905(b)(3)(C)(ii).
(B) Section 2905(b)(3)(D).
(C) Section 2905(b)(3)(E).
(D) Section 2905(b)(5)(A).
(E) Section 2910(9).
(F) Section 2910(10).
(3) Section 2905(e)(1)(B) of that Act is amended by
inserting ``, or realigned or to be realigned,'' after ``closed
or to be closed''.

SEC. 3008. PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS
COMPLEX.

(a) Infrastructure Plan for Nuclear Weapons Complex.--
(1) Preparation and submission.--Not later than the
date on which the budget for the Department of Energy
for fiscal year 2004 is submitted to Congress, the
Secretary of Energy shall submit to Congress an
infrastructure plan for the nuclear weapons complex
adequate to support the nuclear weapons stockpile, the
naval reactors program, and nonproliferation and
national security activities.
(2) Special considerations.--In preparing the
infrastructure plan, the Secretary shall take into
consideration the following:
(A) The Department of Defense Nuclear
Posture Review required pursuant to section
1041 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106-398; 114
Stat. 1654A-262).
(B) Any efficiencies and security benefits
of consolidation of facilities of the nuclear
weapons complex.
(C) The necessity to have a residual
production capability.
(b) Recommendations Regarding Realignments and Closures.--
On the basis of the infrastructure plan prepared under
subsection (a), the Secretary shall make such recommendations
regarding the need to close or realign facilities of the
nuclear weapons complex as the Secretary considers appropriate,
including the Secretary's recommendations on whether to
establish a process by which a round of closures and
realignments would be carried out and any additional
legislative authority necessary to implement the
recommendations. The Secretary shall submit the recommendations
as part of the infrastructure plan under subsection (a).
(c) Definitions.--In this section:
(1) The terms ``Secretary'' and ``Secretary of
Energy'' mean the Secretary of Energy, acting after
consideration of the recommendations of the
Administrator for Nuclear Security.
(2) The term ``nuclear weapons complex'' means the
national security laboratories and nuclear weapons
production facilities (as such terms are defined in
section 3281 of the National Nuclear Security
Administration Act (50 U.S.C. 2471)) and the facilities
of the Naval Nuclear Propulsion Program provided for
under the Naval Nuclear Propulsion Executive Order (as
such term is defined in section 3216 of such Act (50
U.S.C. 2406)).

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Subtitle B--Recurring General Provisions

Subtitle C--Program Authorizations, Restrictions, and Limitations

Subtitle D--Matters Relating to Management of the National Nuclear
Security Administration

Subtitle E--Other Matters

Subtitle F--Rocky Flats National Wildlife Refuge

Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 2002 for the activities of
the National Nuclear Security Administration in carrying out
programs necessary for national security in the amount of
$7,121,094,000, to be allocated as follows:
(1) Weapons activities.--For weapons activities,
$5,343,567,000, to be allocated as follows:
(A) For stewardship operation and
maintenance, $4,601,871,000, to be allocated as
follows:
(i) For directed stockpile work,
$1,002,274,000.
(ii) For campaigns, $2,074,473,000,
to be allocated as follows:
(I) For operation and
maintenance, $1,704,501,000.
(II) For construction,
$369,972,000, to be allocated
as follows:
Project 01-D-101,
distributed information
systems laboratory,
Sandia National
Laboratories,
Livermore, California,
$5,400,000.
Project 00-D-103,
terascale simulation
facility, Lawrence
Livermore National
Laboratory, Livermore,
California,
$22,000,000.
Project 00-D-105,
strategic computing
complex, Los Alamos
National Laboratory,
Los Alamos, New Mexico,
$11,070,000.
Project 00-D-107,
joint computational
engineering laboratory,
Sandia National
Laboratories,
Albuquerque, New
Mexico, $5,377,000.
Project 98-D-125,
tritium extraction
facility, Savannah
River Plant, Aiken,
South Carolina,
$81,125,000.
Project 96-D-111,
national ignition
facility (NIF),
Lawrence Livermore
National Laboratory,
Livermore, California,
$245,000,000.
(iii) For readiness in technical
base and facilities, $1,525,124,000, to
be allocated as follows:
(I) For operation and
maintenance, $1,348,260,000.
(II) For plant projects
(including maintenance,
restoration, planning,
construction, acquisition,
modification of facilities, and
the continuation of projects
authorized in prior years, and
land acquisition related
thereto), $176,864,000, to be
allocated as follows:
Project 02-D-103,
project engineering and
design (PED), various
locations, $22,830,000.
Project 02-D-105,
engineering technology
complex upgrade,
Lawrence Livermore
National Laboratory,
Livermore, California,
$4,750,000.
Project 02-D-107,
electrical power
systems safety
communications and bus
upgrades, Nevada Test
Site, Nevada,
$3,507,000.
Project 01-D-101,
microsystems and
engineering sciences
applications (MESA),
Sandia National
Laboratories,
Albuquerque, New
Mexico, $39,000,000.
Project 01-D-103,
preliminary project
design and engineering,
various locations,
$16,379,000.
Project 01-D-107,
Atlas relocation,
Nevada Test Site,
Nevada, $3,300,000.
Project 01-D-126,
weapons evaluation test
laboratory, Pantex
Plant, Amarillo, Texas,
$7,700,000.
Project 01-D-800,
sensitive compartmented
information facility,
Lawrence Livermore
National Laboratory,
Livermore, California,
$12,993,000.
Project 99-D-103,
isotope sciences
facilities, Lawrence
Livermore National
Laboratory, Livermore,
California, $4,400,000.
Project 99-D-104,
protection of real
property (roof
reconstruction, phase
II), Lawrence Livermore
National Laboratory,
Livermore, California,
$2,800,000.
Project 99-D-106,
model validation and
system certification
center, Sandia National
Laboratories,
Albuquerque, New
Mexico, $4,955,000.
Project 99-D-108,
renovate existing
roadways, Nevada Test
Site, Nevada,
$2,000,000.
Project 99-D-125,
replace boilers and
controls, Kansas City
Plant, Kansas City,
Missouri, $300,000.
Project 99-D-127,
stockpile management
restructuring
initiative, Kansas City
plant, Kansas City,
Missouri, $22,200,000.
Project 99-D-128,
stockpile management
restructuring
initiative, Pantex
Plant, Amarillo, Texas,
$3,300,000.
Project 98-D-123,
stockpile management
restructuring
initiative, tritium
facility modernization
and consolidation,
Savannah River Plant,
Aiken, South Carolina,
$13,700,000.
Project 98-D-124,
stockpile management
restructuring
initiative, Y-12
consolidation, Oak
Ridge, Tennessee,
$6,850,000.
Project 97-D-123,
structural upgrades,
Kansas City Plant,
Kansas City, Missouri,
$3,000,000.
Project 96-D-102,
stockpile stewardship
facilities
revitalization, Phase
VI, various locations,
$2,900,000.
(B) For secure transportation asset,
$121,800,000, to be allocated as follows:
(i) For operation and maintenance,
$77,571,000.
(ii) For program direction,
$44,229,000.
(C) For safeguards and security,
$448,881,000, to be allocated as follows:
(i) For operations and maintenance,
$439,281,000.
(ii) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification
of facilities, and the continuation of
projects authorized in prior years, and
land acquisition related thereto),
$9,600,000, to be allocated as follows:
Project 99-D-132, stockpile
management restructuring
initiative, nuclear material
safeguards and security
upgrades project, Los Alamos
National Laboratory, Los
Alamos, New Mexico, $9,600,000.
(D) For facilities and infrastructure,
$200,000,000.
(E) The total amount authorized by this
paragraph is the sum of the amounts authorized
to be appropriated by subparagraphs (A) through
(D), reduced by $28,985,000, to be derived from
a security charge for reimbursable work.
(2) Defense nuclear nonproliferation.--For defense
nuclear nonproliferation activities, $776,886,000, to
be allocated as follows:
(A) For nonproliferation and verification
research and development, $244,306,000, to be
allocated as follows:
(i) For operation and maintenance,
$208,500,000.
(ii) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification
of facilities, and the continuation of
projects authorized in prior years, and
land acquisition related thereto),
$35,806,000, to be allocated as
follows:
Project 00-D-192,
nonproliferation and
international security center
(NISC), Los Alamos National
Laboratory, Los Alamos, New
Mexico, $35,806,000.
(B) For arms control and Russian transition
initiatives, $117,741,000.
(C) For international materials protection,
control, and accounting, $143,800,000.
(D) For highly enriched uranium
transparency implementation, $13,950,000.
(E) For international nuclear safety,
$10,000,000.
(F) For fissile materials control and
disposition, $289,089,000, to be allocated as
follows:
(i) For United States surplus
fissile materials disposition,
$228,089,000, to be allocated as
follows:
(I) For operation and
maintenance, $130,089,000.
(II) For plant projects
(including maintenance,
restoration, planning,
construction, acquisition,
modification of facilities, and
the continuation of projects
authorized in prior years, and
land acquisition related
thereto), $98,000,000, to be
allocated as follows:
Project 01-D-407,
highly enriched uranium
blend-down, Savannah
River Site, Aiken,
South Carolina,
$24,000,000.
Project 99-D-141,
pit disassembly and
conversion facility,
Savannah River Site,
Aiken, South Carolina,
$11,000,000.
Project 99-D-143,
mixed oxide fuel
fabrication facility,
Savannah River Site,
Aiken, South Carolina,
$63,000,000.
(ii) For Russian surplus fissile
materials disposition, $61,000,000.
(G) The total amount authorized by this
paragraph is the sum of the amounts authorized
to be appropriated by subparagraphs (A) through
(F), reduced by $42,000,000, to be derived from
offsets and use of prior year balances.
(3) Naval reactors.--For naval reactors,
$688,045,000, to be allocated as follows:
(A) For naval reactors development,
$665,445,000, to be allocated as follows:
(i) For operation and maintenance,
$652,245,000.
(ii) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification
of facilities, and the continuation of
projects authorized in prior years, and
land acquisition related thereto),
$13,200,000, to be allocated as
follows:
Project 01-D-200, major
office replacement building,
Schenectady, New York,
$9,000,000.
Project 90-N-102, expended
core facility dry cell project,
Naval Reactors Facility, Idaho,
$4,200,000.
(B) For program direction, $22,600,000.
(4) Office of administrator for nuclear security.--
For the Office of the Administrator for Nuclear
Security, and for program direction for the National
Nuclear Security Administration (other than for naval
reactors and secure transportation asset),
$312,596,000.

SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

(a) In General.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 2002
for environmental restoration and waste management activities
in carrying out programs necessary for national security in the
amount of $6,022,415,000, to be allocated as follows:
(1) Closure projects.--For closure projects carried
out in accordance with section 3143 of the National
Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201; 110 Stat. 2836; 42 U.S.C. 7277n),
$1,080,538,000.
(2) Site/project completion.--For site completion
and project completion in carrying out environmental
management activities necessary for national security
programs, $959,696,000, to be allocated as follows:
(A) For operation and maintenance,
$919,030,000.
(B) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification of
facilities, and the continuation of projects
authorized in prior years, and land acquisition
related thereto), $40,666,000, to be allocated
as follows:
Project 01-D-402, Intec cathodic
protection system expansion, Idaho
National Engineering and Environmental
Laboratory, Idaho Falls, Idaho,
$3,256,000.
Project 02-D-420, plutonium
stabilization and packaging, Savannah
River Site, Aiken, South Carolina,
$20,000,000.
Project 01-D-414, preliminary
project, engineering and design (PE&D),
various locations, $2,754,000.
Project 99-D-402, tank farm support
services, F&H areas, Savannah River
Site, Aiken, South Carolina,
$5,040,000.
Project 99-D-404, health physics
instrumentation laboratory, Idaho
National Engineering and Environmental
Laboratory, Idaho Falls, Idaho,
$2,700,000.
Project 98-D-453, plutonium
stabilization and handling system for
plutonium finishing plant, Richland,
Washington, $1,910,000.
Project 96-D-471,
chlorofluorocarbon heating,
ventilation, and air conditioning and
chiller retrofit, Savannah River Site,
Aiken, South Carolina, $4,244,000.
Project 86-D-103, decontamination
and waste treatment facility, Lawrence
Livermore National Laboratory,
Livermore, California, $762,000.
(3) Post-2006 completion.--For post-2006 completion
in carrying out environmental restoration and waste
management activities necessary for national security
programs, $3,265,201,000, to be allocated as follows:
(A) For operation and maintenance,
$1,955,979,000.
(B) For uranium enrichment decontamination
and decommissioning fund contribution,
$420,000,000.
(C) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification of
facilities, and the continuation of projects
authorized in prior years, and land acquisition
related thereto), $6,754,000, to be allocated
as follows:
Project 93-D-187, high-level waste
removal from filled waste tanks,
Savannah River Site, Aiken, South
Carolina, $6,754,000.
(D) For the Office of River Protection in
carrying out environmental restoration and
waste management activities necessary for
national security programs, $882,468,000, to be
allocated as follows:
(i) For operation and maintenance,
$322,151,000.
(ii) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification
of facilities, and the continuation of
projects authorized in prior years, and
land acquisition related thereto),
$560,317,000, to be allocated as
follows:
Project 01-D-416, waste
treatment and immobilization
plant, Richland, Washington,
$520,000,000.
Project 97-D-402, tank farm
restoration and safe
operations, Richland,
Washington, $33,473,000.
Project 94-D-407, initial
tank retrieval systems,
Richland, Washington,
$6,844,000.
(4) Science and technology development.--For
science and technology development in carrying out
environmental restoration and waste management
activities necessary for national security programs,
$216,000,000.
(5) Excess facilities.--For excess facilities in
carrying out environmental restoration and waste
management activities necessary for national security
programs, $1,300,000.
(6) Safeguards and security.--For safeguards and
security in carrying out environmental restoration and
waste management activities necessary for national
security programs, $205,621,000.
(7) Program direction.--For program direction in
carrying out environmental restoration and waste
management activities necessary for national security
programs, $355,761,000.
(b) Adjustment.--The total amount authorized to be
appropriated by subsection (a) is the sum of the amounts
authorized to be appropriated by paragraphs (1) through (7) of
that subsection, reduced by $61,702,000, of which $56,311,000
is to reflect an offset provided by use of prior year balances
and $5,391,000 is to be derived from a security charge for
reimbursable work.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

(a) In General.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 2002
for other defense activities in carrying out programs necessary
for national security in the amount of $499,663,000, to be
allocated as follows:
(1) Intelligence.--For intelligence, $40,844,000.
(2) Counterintelligence.--For counterintelligence,
$46,000,000.
(3) Security and emergency operations.--For
security and emergency operations, $250,427,000, to be
allocated as follows:
(A) For nuclear safeguards and security,
$116,500,000.
(B) For security investigations,
$44,927,000.
(C) For corporate management information
programs, $10,000,000.
(D) For program direction, $79,000,000.
(4) Independent oversight and performance
assurance.--For independent oversight and performance
assurance, $14,904,000.
(5) Environment, safety, and health.--For the
Office of Environment, Safety, and Health,
$113,307,000, to be allocated as follows:
(A) For environment, safety, and health
(defense), $91,307,000.
(B) For program direction, $22,000,000.
(6) Worker and community transition assistance.--
For worker and community transition assistance,
$20,000,000, to be allocated as follows:
(A) For worker and community transition,
$18,000,000.
(B) For program direction, $2,000,000.
(7) Office of hearings and appeals.--For the Office
of Hearings and Appeals, $2,893,000.
(8) National security programs administrative
support.--For national security programs administrative
support, $22,000,000.
(b) Adjustment.--The amount authorized to be appropriated
pursuant to subsection (a) is the total of the amounts
authorized to be appropriated by paragraphs (1) through (8) of
that subsection, reduced by $10,712,000, of which $10,000,000
is to reflect an offset provided by use of prior year balances
and $712,000 is to be derived from a security charge for
reimbursable work.

SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 2002 for privatization
initiatives in carrying out environmental restoration and waste
management activities necessary for national security programs
in the amount of $153,537,000, to be allocated as follows:
Project 02-PVT-1, Paducah disposal facility,
Paducah, Kentucky, $13,329,000.
Project 02-PVT-2, Portsmouth disposal facility,
Portsmouth, Ohio, $2,000,000.
Project 98-PVT-2, spent nuclear fuel dry storage,
Idaho Falls, Idaho, $49,332,000.
Project 98-PVT-5, environmental management/waste
management disposal, Oak Ridge, Tennessee, $26,065,000.
Project 97-PVT-2, advanced mixed waste treatment
project, Idaho Falls, Idaho, $52,000,000.
Project 97-PVT-3, transuranic waste treatment, Oak
Ridge, Tennessee, $10,826,000.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 2002 for payment to the
Nuclear Waste Fund established in section 302(c) of the Nuclear
Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of
$280,000,000.

Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

(a) In General.--Except as provided in sections 3129 and
3130, until the Secretary of Energy submits to the
congressional defense committees the report referred to in
subsection (b) and a period of 30 days has elapsed after the
date on which such committees receive the report, the Secretary
may not use amounts appropriated pursuant to this title for any
program--
(1) in amounts that exceed, in a fiscal year, the
amount authorized for that program by this title; or
(2) which has not been presented to, or requested
of, Congress.
(b) Report.--(1) The report referred to in subsection (a)
is a report containing a full and complete statement of the
action proposed to be taken and the facts and circumstances
relied upon in support of the proposed action.
(2) In the computation of the 30-day period under
subsection (a), there shall be excluded any day on which either
House of Congress is not in session because of an adjournment
of more than 3 days to a day certain.
(c) Limitations.--(1) In no event may the total amount of
funds obligated pursuant to this title exceed the total amount
authorized to be appropriated by this title.
(2) Funds appropriated pursuant to this title may not be
used for an item for which Congress has specifically denied
funds.

SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.

(a) Authority.--The Secretary of Energy may carry out any
minor construction project using operation and maintenance
funds, or facilities and infrastructure funds, authorized by
this title.
(b) Annual Report.--The Secretary shall submit to the
congressional defense committees on an annual basis a report on
each exercise of the authority in subsection (a) during the
preceding year. Each report shall provide a brief description
of each minor construction project covered by the report.
(c) Cost Variation Reports to Congressional Committees.--
If, at any time during the construction of any minor
construction project authorized by this title, the estimated
cost of the project is revised and the revised cost of the
project exceeds $5,000,000, the Secretary shall immediately
submit to the congressional defense committees a report
explaining the reasons for the cost variation.
(d) Minor Construction Project Defined.--In this section,
the term ``minor construction project'' means any plant project
not specifically authorized by law if the approved total
estimated cost of the plant project does not exceed $5,000,000.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

(a) In General.--(1) Except as provided in paragraph (2),
construction on a construction project may not be started or
additional obligations incurred in connection with the project
above the total estimated cost, whenever the current estimated
cost of the construction project, authorized by 3101, 3102, or
3103, or which is in support of national security programs of
the Department of Energy and was authorized by any previous
Act, exceeds by more than 25 percent the higher of--
(A) the amount authorized for the project; or
(B) the amount of the total estimated cost for the
project as shown in the most recent budget
justification data submitted to Congress.
(2) An action described in paragraph (1) may be taken if--
(A) the Secretary of Energy has submitted to the
congressional defense committees a report on the
actions and the circumstances making such action
necessary; and
(B) a period of 30 days has elapsed after the date
on which the report is received by the committees.
(3) In the computation of the 30-day period under paragraph
(2), there is excluded any day on which either House of
Congress is not in session because of an adjournment of more
than 3 days to a day certain.
(b) Exception.--Subsection (a) does not apply to a
construction project with a current estimated cost of less than
$5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

(a) Transfer to Other Federal Agencies.--The Secretary of
Energy may transfer funds authorized to be appropriated to the
Department of Energy pursuant to this title to other Federal
agencies for the performance of work for which the funds were
authorized. Funds so transferred may be merged with and be
available for the same purposes and for the same time period as
the authorizations of the Federal agency to which the amounts
are transferred.
(b) Transfer Within Department of Energy.--(1) Subject to
paragraph (2), the Secretary of Energy may transfer funds
authorized to be appropriated to the Department of Energy
pursuant to this title between any such authorizations. Amounts
of authorizations so transferred may be merged with and be
available for the same purposes and for the same period as the
authorization to which the amounts are transferred.
(2) Not more than 5 percent of any such authorization may
be transferred between authorizations under paragraph (1). No
such authorization may be increased or decreased by more than 5
percent by a transfer under such paragraph.
(c) Limitations.--The authority provided by this subsection
to transfer authorizations--
(1) may be used only to provide funds for items
relating to activities necessary for national security
programs that have a higher priority than the items
from which the funds are transferred; and
(2) may not be used to provide funds for an item
for which Congress has specifically denied funds.
(d) Notice to Congress.--The Secretary of Energy shall
promptly notify the Committees on Armed Services of the Senate
and House of Representatives of any transfer of funds to or
from authorizations under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

(a) Requirement of Conceptual Design.--(1) Subject to
paragraph (2) and except as provided in paragraph (3), before
submitting to Congress a request for funds for a construction
project that is in support of a national security program of
the Department of Energy, the Secretary of Energy shall
complete a conceptual design for that project.
(2) If the estimated cost of completing a conceptual design
for a construction project exceeds $3,000,000, the Secretary
shall submit to Congress a request for funds for the conceptual
design before submitting a request for funds for the
construction project.
(3) The requirement in paragraph (1) does not apply to a
request for funds--
(A) for a minor construction project the total
estimated cost of which is less than $5,000,000; or
(B) for emergency planning, design, and
construction activities under section 3126.
(b) Authority for Construction Design.--(1) Within the
amounts authorized by this title, the Secretary of Energy may
carry out construction design (including architectural and
engineering services) in connection with any proposed
construction project if the total estimated cost for such
design does not exceed $600,000.
(2) If the total estimated cost for construction design in
connection with any construction project exceeds $600,000,
funds for that design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION
ACTIVITIES.

(a) Authority.--The Secretary of Energy may use any funds
available to the Department of Energy pursuant to an
authorization in this title, including funds authorized to be
appropriated for advance planning, engineering, and
construction design, and for plant projects, under sections
3101, 3102, 3103, and 3104 to perform planning, design, and
construction activities for any Department of Energy national
security program construction project that, as determined by
the Secretary, must proceed expeditiously in order to protect
public health and safety, to meet the needs of national
defense, or to protect property.
(b) Limitation.--The Secretary may not exercise the
authority under subsection (a) in the case of any construction
project until the Secretary has submitted to the congressional
defense committees a report on the activities that the
Secretary intends to carry out under this section and the
circumstances making those activities necessary.
(c) Specific Authority.--The requirement of section
3125(b)(2) does not apply to emergency planning, design, and
construction activities conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE
DEPARTMENT OF ENERGY.

Subject to the provisions of appropriation Acts and section
3121, amounts appropriated pursuant to this title for
management and support activities and for general plant
projects are available for use, when necessary, in connection
with all national security programs of the Department of
Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

(a) In General.--Except as provided in subsection (b), when
so specified in an appropriations Act, amounts appropriated for
operation and maintenance or for plant projects may remain
available until expended.
(b) Exception for Program Direction Funds.--Amounts
appropriated for program direction pursuant to an authorization
of appropriations in subtitle A shall remain available to be
expended only until the end of fiscal year 2003.

SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

(a) Transfer Authority for Defense Environmental Management
Funds.--The Secretary of Energy shall provide the manager of
each field office of the Department of Energy with the
authority to transfer defense environmental management funds
from a program or project under the jurisdiction of that office
to another such program or project.
(b) Limitations.--(1) Not more than three transfers may be
made to or from any program or project under subsection (a) in
a fiscal year.
(2) The amount transferred to or from a program or project
under in any one transfer under subsection (a) may not exceed
$5,000,000.
(3) A transfer may not be carried out by a manager of a
field office under subsection (a) unless the manager determines
that the transfer is necessary--
(A) to address a risk to health, safety, or the
environment; or
(B) to assure the most efficient use of defense
environmental management funds at the field office.
(4) Funds transferred pursuant to subsection (a) may not be
used for an item for which Congress has specifically denied
funds or for a new program or project that has not been
authorized by Congress.
(c) Exemption From Reprogramming Requirements.--The
requirements of section 3121 shall not apply to transfers of
funds pursuant to subsection (a).
(d) Notification.--The Secretary, acting through the
Assistant Secretary of Energy for Environmental Management,
shall notify Congress of any transfer of funds pursuant to
subsection (a) not later than 30 days after such transfer
occurs.
(e) Definitions.--In this section:
(1) The term ``program or project'' means, with
respect to a field office of the Department of Energy,
any of the following:
(A) A program referred to or a project
listed in paragraph (2) or (3) of section
3102(a).
(B) A program or project not described in
subparagraph (A) that is for environmental
restoration or waste management activities
necessary for national security programs of the
Department, that is being carried out by that
office, and for which defense environmental
management funds have been authorized and
appropriated before the date of the enactment
of this Act.
(2) The term ``defense environmental management
funds'' means funds appropriated to the Department of
Energy pursuant to an authorization for carrying out
environmental restoration and waste management
activities necessary for national security programs.
(f) Duration of Authority.--The managers of the field
offices of the Department may exercise the authority provided
under subsection (a) during the period beginning on October 1,
2001, and ending on September 30, 2002.

SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

(a) Transfer Authority for Weapons Activities Funds.--The
Secretary of Energy shall provide the manager of each field
office of the Department of Energy with the authority to
transfer weapons activities funds from a program or project
under the jurisdiction of that office to another such program
or project.
(b) Limitations.--(1) Not more than one transfer may be
made to or from any program or project under subsection (a) in
a fiscal year.
(2) The amount transferred to or from a program or project
in any one transfer under subsection (a) may not exceed
$5,000,000.
(3) A transfer may not be carried out by a manager of a
field office under subsection (a) unless the manager determines
that the transfer--
(A) is necessary to address a risk to health,
safety, or the environment; or
(B) will result in cost savings and efficiencies.
(4) A transfer may not be carried out by a manager of a
field office under subsection (a) to cover a cost overrun or
scheduling delay for any program or project.
(5) Funds transferred pursuant to subsection (a) may not be
used for an item for which Congress has specifically denied
funds or for a new program or project that has not been
authorized by Congress.
(c) Exemption From Reprogramming Requirements.--The
requirements of section 3121 shall not apply to transfers of
funds pursuant to subsection (a).
(d) Notification.--The Secretary, acting through the
Administrator for Nuclear Security, shall notify Congress of
any transfer of funds pursuant to subsection (a) not later than
30 days after such transfer occurs.
(e) Definitions.--In this section:
(1) The term ``program or project'' means, with
respect to a field office of the Department of Energy,
any of the following:
(A) A program referred to or a project
listed in 3101(1).
(B) A program or project not described in
subparagraph (A) that is for weapons activities
necessary for national security programs of the
Department, that is being carried out by that
office, and for which weapons activities funds
have been authorized and appropriated before
the date of the enactment of this Act.
(2) The term ``weapons activities funds'' means
funds appropriated to the Department of Energy pursuant
to an authorization for carrying out weapons activities
necessary for national security programs.
(f) Duration of Authority.--The managers of the field
offices of the Department may exercise the authority provided
under subsection (a) during the period beginning on October 1,
2001, and ending on September 30, 2002.

Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. CONSOLIDATION OF NUCLEAR CITIES INITIATIVE PROGRAM WITH
INITIATIVES FOR PROLIFERATION PREVENTION PROGRAM.

The Administrator for Nuclear Security shall consolidate
the Nuclear Cities Initiative program with the Initiatives for
Proliferation Prevention program under a single management
line.

SEC. 3132. NUCLEAR CITIES INITIATIVE.

(a) Limitations on Use of Funds.--No funds authorized to be
appropriated for the Nuclear Cities Initiative after fiscal
year 2001 may be obligated or expended with respect to more
than three nuclear cities, or more than two serial production
facilities in Russia, until 30 days after the Administrator for
Nuclear Security submits to the appropriate congressional
committees an agreement signed by the Russian Federation on
access under the Nuclear Cities Initiative to the ten closed
nuclear cities and four serial production facilities of the
Nuclear Cities Initiative.
(b) Annual Report.--(1) Not later than the first Monday in
February each year, the Administrator shall submit to the
appropriate congressional committees a report on financial and
programmatic activities with respect to the Nuclear Cities
Initiative during the preceding fiscal year.
(2) Each report shall include, for the fiscal year covered
by such report, the following:
(A) A list of each project that is or was
completed, ongoing, or planned under the Nuclear Cities
Initiative during such fiscal year.
(B) For each project listed under subparagraph (A),
information, current as of the end of such fiscal year,
on the following:
(i) The purpose of such project.
(ii) The budget for such project.
(iii) The life-cycle costs of such project.
(iv) Participants in such project.
(v) The commercial viability of such
project.
(vi) The number of jobs in Russia created
or to be created by or through such project.
(vii) Of the total amount of funds spent on
such project, the percentage of such amount
spent in the United States and the percentage
of such amount spent overseas.
(C) A certification by the Administrator that each
project listed under subparagraph (A) did contribute,
is contributing, or will contribute, as the case may
be, to the downsizing of the nuclear weapons complex in
Russia, together with a description of the evidence
utilized to make such certification.
(c) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the
Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of
Representatives.
(2) Nuclear cities initiative.--The term ``Nuclear
Cities Initiative'' means the initiative arising
pursuant to the March 1998 discussion between the Vice
President of the United States and the Prime Minister
of the Russian Federation and between the Secretary of
Energy of the United States and the Minister of Atomic
Energy of the Russian Federation.
(3) Nuclear city.--The term ``nuclear city'' means
any of the nuclear cities within the complex of the
Russia Ministry of Atomic Energy (MINATOM) as follows:
(A) Sarov (Arzamas-16 and Avangard).
(B) Zarechnyy (Penza-19).
(C) Novoural'sk (Sverdlovsk-44).
(D) Lesnoy (Sverdlovsk-45).
(E) Ozersk (Chelyabinsk-65).
(F) Snezhinsk (Chelyabinsk-70).
(G) Trechgornyy (Zlatoust-36).
(H) Seversk (Tomsk-7).
(I) Zhelenznogorsk (Krasnoyarsk-26).
(J) Zelenogorsk (Krasnoyarsk-45).

SEC. 3133. LIMITATION ON AVAILABILITY OF FUNDS FOR WEAPONS ACTIVITIES
FOR FACILITIES AND INFRASTRUCTURE.

Not more than 50 percent of the funds authorized to be
appropriated by section 3101(a)(1)(D) for the National Nuclear
Security Administration for weapons activities for facilities
and infrastructure may be obligated or expended until the
Administrator for Nuclear Security submits to the congressional
defense committees a report setting forth the following:
(1) Criteria for the selection of projects to be
carried out using such funds.
(2) Criteria for establishing priorities among
projects so selected.
(3) A list of the projects so selected, including
the priority assigned to each such project.

SEC. 3134. LIMITATION ON AVAILABILITY OF FUNDS FOR OTHER DEFENSE
ACTIVITIES FOR NATIONAL SECURITY PROGRAMS
ADMINISTRATIVE SUPPORT.

Not more than $5,000,000 of the funds authorized to be
appropriated by section 3103(a)(8) for other defense activities
for national security programs administrative support may be
obligated or expended until the latest of the following:
(1) The date on which the Secretary of Energy
submits to Congress a report setting forth the purposes
for which the Secretary plans to obligate and expend
such funds.
(2) The date on which the Administrator for Nuclear
Security submits to Congress the future-years nuclear
security program for fiscal year 2002 required by
section 3253 of the National Nuclear Security
Administration Act (title XXXII of Public Law 106-65;
50 U.S.C. 2453).
(3) The date on which the Secretary of Energy
submits to Congress the report on the feasibility of
using an energy savings performance contract mechanism
to offset, or possibly cover, the cost of a new office
building for the Albuquerque operations office of the
Department of Energy, as completed by the Secretary in
accordance with the directive contained in Senate
Report 106-50 (the report of the Committee on Armed
Services of the Senate to accompany the bill S. 1059 of
the One Hundred Sixth Congress, relating to the
National Defense Authorization Act for Fiscal Year
2000; p. 470).

SEC. 3135. TERMINATION DATE OF OFFICE OF RIVER PROTECTION, RICHLAND,
WASHINGTON.

Subsection (f) of section 3139 of the Strom Thurmond
National Defense Authorization Act for Fiscal Year 1999 (Public
Law 105-261; 112 Stat. 2250), as amended by section 3141 of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat.
1654A-462), is amended to read as follows:
``(f) Termination.--(1) The Office shall terminate on the
later to occur of the following dates:
``(A) September 30, 2010.
``(B) The date on which the Assistant Secretary of
Energy for Environmental Management determines, in
consultation with the head of the Office, that
continuation of the Office is no longer necessary to
carry out the responsibilities of the Department of
Energy under the Tri-Party Agreement.
``(2) The Assistant Secretary shall notify, in writing, the
committees referred to in subsection (d) of a determination
under paragraph (1).
``(3) In this subsection, the term `Tri-Party Agreement'
means the Hanford Federal Facility Agreement and Consent Order
entered into among the Department of Energy, the Environmental
Protection Agency, and the State of Washington Department of
Ecology.''.

SEC. 3136. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS
NATIONAL LABORATORY, NEW MEXICO.

(a) Support for Fiscal 2002.--From amounts appropriated or
otherwise made available to the Secretary of Energy by this
title--
(1) $6,900,000 shall be available for payment by
the Secretary for fiscal year 2002 to the Los Alamos
National Laboratory Foundation, a not-for-profit
foundation chartered in accordance with section 3167(a)
of the National Defense Authorization Act for Fiscal
Year 1998 (Public Law 105-85; 111 Stat. 2052); and
(2) $8,000,000 shall be available for extension of
the contract between the Department of Energy and the
Los Alamos Public Schools through fiscal year 2002.
(b) Support for Fiscal 2003.--Subject to the availability
of appropriations, the Secretary is authorized to--
(1) make payment for fiscal year 2003 similar to
the payment referred to in subsection (a)(1); and
(2) provide for a contract extension through fiscal
2003 similar to the contract extension referred to in
subsection (a)(2).
(c) Use of Funds.--The foundation referred to in subsection
(a)(1) shall--
(1) utilize funds provided under this section as a
contribution to the endowment fund for the foundation;
and
(2) use the income generated from investments in
the endowment fund that are attributable to payments
made under this section to fund programs to support the
educational needs of children in public schools in the
vicinity of Los Alamos National Laboratory.
(d) Report.--Not later than March 1, 2002, the Secretary
shall submit to the congressional defense committees a report
setting forth the following:
(1) An evaluation of the requirements for continued
payments beyond fiscal year 2003 into the endowment
fund of the foundation referred to in subsection (a) to
enable the foundation to meet the goals of the
Department to support the recruitment and retention of
staff at the Los Alamos National Laboratory.
(2) The Secretary's recommendations for any further
support beyond fiscal year 2003 directly to the Los
Alamos Public Schools.

SEC. 3137. REPORTS ON ACHIEVEMENT OF MILESTONES FOR NATIONAL IGNITION
FACILITY.

(a) Notification of Achievement.--The Administrator for
Nuclear Security shall notify the congressional defense
committees when the National Ignition Facility (NIF), Lawrence
Livermore National Laboratory, Livermore, California, achieves
each Level I milestone and Level II milestone for the National
Ignition Facility.
(b) Report on Failure of Timely Achievement.--Not later
than 10 days after the date on which the National Ignition
Facility fails to achieve a Level I milestone or Level II
milestone for the National Ignition Facility in a timely
manner, the Administrator shall submit to the congressional
defense committees a report on such failure. Each such report
shall include--
(1) a statement of the failure of the National
Ignition Facility to achieve the milestone concerned in
a timely manner;
(2) an explanation for the failure; and
(3) either--
(A) an estimate when that milestone will be
achieved; or
(B) if that milestone will not be
achieved--
(i) a statement that that milestone
will not be achieved;
(ii) an explanation why that
milestone will not be achieved; and
(iii) the implications for the
overall scope, schedule, and budget of
the National Ignition Facility project
of not achieving that milestone.
(c) Milestones.--For purposes of this section, the Level I
milestones and Level II milestones for the National Ignition
Facility are as established in the August 2000 revised National
Ignition Facility baseline document.
(d) Termination.--The requirements of this section shall
terminate on September 30, 2004.

Subtitle D--Matters Relating to Management of the National Nuclear
Security Administration

SEC. 3141. ESTABLISHMENT OF PRINCIPAL DEPUTY ADMINISTRATOR OF NATIONAL
NUCLEAR SECURITY ADMINISTRATION.

(a) Establishment.--Subtitle A of the National Nuclear
Security Administration Act (title XXXII of Public Law 106-65;
50 U.S.C. 2401 et seq.) is amended--
(1) by redesignating section 3213 as section 3220
and transferring such section, as so redesignated, to
the end of that subtitle; and
(2) by inserting after section 3212 the following
new section 3213:

``SEC. 3213. PRINCIPAL DEPUTY ADMINISTRATOR FOR NUCLEAR SECURITY.

``(a) In General.--(1) There is in the Administration a
Principal Deputy Administrator, who is appointed by the
President, by and with the advice and consent of the Senate.
``(2) The Principal Deputy Administrator shall be appointed
from among persons who have extensive background in
organizational management and are well qualified to manage the
nuclear weapons, nonproliferation, and materials disposition
programs of the Administration in a manner that advances and
protects the national security of the United States.
``(b) Duties.--Subject to the authority, direction, and
control of the Administrator, the Principal Deputy
Administrator shall perform such duties and exercise such
powers as the Administrator may prescribe, including the
coordination of activities among the elements of the
Administration. The Principal Deputy Administrator shall act
for, and exercise the powers of, the Administrator when the
Administrator is disabled or the position of Administrator is
vacant.''.
(b) Pay Level.--Section 5315 of title 5, United States
Code, is amended--
(1) by inserting before the item relating to Deputy
Administrators of the National Nuclear Security
Administration the following new item:
``Principal Deputy Administrator, National Nuclear
Security Administration.''; and
(2) by inserting ``Additional'' before ``Deputy
Administrators of the National Nuclear Security
Administration''.
(c) Clerical Amendments.--The table of contents preceding
section 3201 of such Act is amended--
(1) by striking the item relating to section 3213
and inserting the following:

``Sec. 3213. Principal Deputy Administrator for National Security.'';
and
(2) by inserting after the item relating to section
3218 the following new items:

``Sec. 3219. Scope of authority of Secretary of Energy to modify
organization of Administration.
``Sec. 3220. Status of Administration and contractor personnel within
Department of Energy.''.

SEC. 3142. ELIMINATION OF REQUIREMENT THAT NATIONAL SECURITY
LABORATORIES AND NUCLEAR WEAPONS PRODUCTION
FACILITIES REPORT TO DEPUTY ADMINISTRATOR FOR
DEFENSE PROGRAMS.

Section 3214 of the National Nuclear Security
Administration Act (title XXXII of Public Law 106-65; 113 Stat.
959; 50 U.S.C. 2404) is amended by striking subsection (c).

SEC. 3143. REPEAL OF DUPLICATIVE PROVISION RELATING TO DUAL OFFICE
HOLDING BY PERSONNEL OF NATIONAL NUCLEAR SECURITY
ADMINISTRATION.

Section 3245 of the National Nuclear Security
Administration Act (50 U.S.C. 2443), as added by section 315 of
the Energy and Water Development Appropriations Act, 2001 (as
enacted into law by Public Law 106-377; 114 Stat. 1441B-23), is
repealed.

SEC. 3144. REPORT ON ADEQUACY OF FEDERAL PAY AND HIRING AUTHORITIES TO
MEET PERSONNEL REQUIREMENTS OF NATIONAL NUCLEAR
SECURITY ADMINISTRATION.

(a) Report Required.--Not later than March 1, 2002, the
Administrator for Nuclear Security shall submit to the
congressional committees specified in subsection (b) a report
on the adequacy of Federal pay and hiring authorities to meet
the personnel requirements of the National Nuclear Security
Administration. The report shall include the following:
(1) A description of the Federal pay and hiring
authorities available to the Administrator.
(2) A description of the Federal pay and hiring
authorities that are not available to the
Administrator, and an explanation why such authorities
are not available.
(3) If any Federal pay and hiring authorities
referred to in paragraph (1) are not being used, an
explanation why such authorities are not being used.
(4) An assessment of whether or not existing
Federal pay and hiring authorities are adequate or
inadequate to meet the personnel requirements of the
Administration.
(5) Any recommendations that the Administrator
considers appropriate for modifications or enhancements
of existing Federal pay and hiring authorities in order
to meet the personnel requirements of the
Administration.
(6) Any recommendations that the Administrator
considers appropriate for new Federal pay and hiring
authorities in order to meet the personnel requirements
of the Administration.
(7) A plan for structuring the pay and hiring
authorities with respect to the Federal workforce of
the Administration so to ensure that such workforce
meets applicable requirements of the most current five-
year program plan for the Administration.
(b) Specified Committees.--The congressional committees
referred to in subsection (a) are the following:
(1) The Committee on Armed Services and the
Committee on Governmental Affairs of the Senate.
(2) The Committee on Armed Services and the
Committee on Government Reform of the House of
Representatives.

Subtitle E--Other Matters

SEC. 3151. IMPROVEMENTS TO ENERGY EMPLOYEES OCCUPATIONAL ILLNESS
COMPENSATION PROGRAM.

(a) Amendments to Energy Employees Program.--The Energy
Employees Occupational Illness Compensation Program Act of 2000
(title XXXVI of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-394); 42 U.S.C. 7384 et
seq.) is amended as follows:
(1) Certain leukemia as specified cancer.--Section
3621(17) (114 Stat. 1654A-502; 42 U.S.C. 7384l(17)), as
amended by section 2403 of the Supplemental
Appropriations Act, 2001 (Public Law 107-20; 115 Stat.
175), is further amended by adding at the end the
following new subparagraph:
``(D) Leukemia (other than chronic
lymphocytic leukemia), if initial occupation
exposure occurred before 21 years of age and
onset occurred more than two years after
initial occupational exposure.''.
(2) Additional members of special exposure
cohort.--Section 3626(b) (114 Stat. 1654A-505; 42
U.S.C. 7384q(b)) is amended in the matter preceding
paragraph (1) by inserting after ``Department of Energy
facility'' the following: ``, or at an atomic weapons
employer facility,''.
(3) Establishment of chronic silicosis.--Section
3627(e)(2)(A) (114 Stat. 1654A-506; 42 U.S.C.
7384r(e)(2)(A)) is amended by striking ``category 1/1''
and inserting ``category
1/0''.
(4) Survivors.--
(A) Section 3628(e) (114 Stat. 1654A-506;
42 U.S.C. 7384s(e)) is amended to read as
follows:
``(e) Payments in the case of deceased persons.--(1) In the
case of a covered employee who is deceased at the time of
payment of compensation under this section, whether or not the
death is the result of the covered employee's occupational
illness, such payment may be made only as follows:
``(A) If the covered employee is survived by a
spouse who is living at the time of payment, such
payment shall be made to such surviving spouse.
``(B) If there is no surviving spouse described in
subparagraph (A), such payment shall be made in equal
shares to all children of the covered employee who are
living at the time of payment.
``(C) If there is no surviving spouse described in
subparagraph (A) and if there are no children described
in subparagraph (B), such payment shall be made in
equal shares to the parents of the covered employee who
are living at the time of payment.
``(D) If there is no surviving spouse described in
subparagraph (A), and if there are no children
described in subparagraph (B) or parents described in
subparagraph (C), such payment shall be made in equal
shares to all grandchildren of the covered employee who
are living at the time of payment.
``(E) If there is no surviving spouse described in
subparagraph (A), and if there are no children
described in subparagraph (B), parents described in
subparagraph (C), or grandchildren described in
subparagraph (D), then such payment shall be made in
equal shares to the grandparents of the covered
employee who are living at the time of payment.
``(F) Notwithstanding the other provisions of this
paragraph, if there is--
``(i) a surviving spouse described in
subparagraph (A); and
``(ii) at least one child of the covered
employee who is living and a minor at the time
of payment and who is not a recognized natural
child or adopted child of such surviving
spouse,
then half of such payment shall be made to such
surviving spouse, and the other half of such payment
shall be made in equal shares to each child of the
covered employee who is living and a minor at the time
of payment.
``(2) If a covered employee eligible for payment dies
before filing a claim under this title, a survivor of that
employee who may receive payment under paragraph (1) may file a
claim for such payment.
``(3) For purposes of this subsection--
``(A) the `spouse' of an individual is a wife or
husband of that individual who was married to that
individual for at least one year immediately before the
death of that individual;
``(B) a `child' includes a recognized natural
child, a stepchild who lived with an individual in a
regular parent-child relationship, and an adopted
child;
``(C) a `parent' includes fathers and mothers
through adoption;
``(D) a `grandchild' of an individual is a child of
a child of that individual; and
``(E) a `grandparent' of an individual is a parent
of a parent of that individual.''.
(B) Section 3630(e) (114 Stat. 1654A-507;
42 U.S.C. 7384u(e)) is amended to read as
follows:
``(e) Payments in the case of deceased persons.--(1) In the
case of a covered employee who is deceased at the time of
payment of compensation under this section, whether or not the
death is the result of the covered employee's occupational
illness, such payment may be made only as follows:
``(A) If the covered employee is survived by a
spouse who is living at the time of payment, such
payment shall be made to such surviving spouse.
``(B) If there is no surviving spouse described in
subparagraph (A), such payment shall be made in equal
shares to all children of the covered employee who are
living at the time of payment.
``(C) If there is no surviving spouse described in
subparagraph (A) and if there are no children described
in subparagraph (B), such payment shall be made in
equal shares to the parents of the covered employee who
are living at the time of payment.
``(D) If there is no surviving spouse described in
subparagraph (A), and if there are no children
described in subparagraph (B) or parents described in
subparagraph (C), such payment shall be made in equal
shares to all grandchildren of the covered employee who
are living at the time of payment.
``(E) If there is no surviving spouse described in
subparagraph (A), and if there are no children
described in subparagraph (B), parents described in
subparagraph (C), or grandchildren described in
subparagraph (D), then such payment shall be made in
equal shares to the grandparents of the covered
employee who are living at the time of payment.
``(F) Notwithstanding the other provisions of this
paragraph, if there is--
``(i) a surviving spouse described in
subparagraph (A); and
``(ii) at least one child of the covered
employee who is living and a minor at the time
of payment and who is not a recognized natural
child or adopted child of such surviving
spouse,
then half of such payment shall be made to such
surviving spouse, and the other half of such payment
shall be made in equal shares to each child of the
covered employee who is living and a minor at the time
of payment.
``(2) If a covered employee eligible for payment dies
before filing a claim under this title, a survivor of that
employee who may receive payment under paragraph (1) may file a
claim for such payment.
``(3) For purposes of this subsection--
``(A) the `spouse' of an individual is a wife or
husband of that individual who was married to that
individual for at least one year immediately before the
death of that individual;
``(B) a `child' includes a recognized natural
child, a stepchild who lived with an individual in a
regular parent-child relationship, and an adopted
child;
``(C) a `parent' includes fathers and mothers
through adoption;
``(D) a `grandchild' of an individual is a child of
a child of that individual; and
``(E) a `grandparent' of an individual is a parent
of a parent of that individual.''.
(C) Paragraph (18) of section 3621 (114
Stat. 1654A-502; 42 U.S.C. 7384l) is repealed.
(D) The amendments made by this paragraph
shall take effect on July 1, 2001.
(5) Election of remedies.--Section 3645 (114 Stat.
1654A-510; 42 U.S.C. 7385d) is amended by amending
subsections (a) through (d) to read as follows:
``(a) Effect of Tort Cases Filed Before Enactment of
Original Law.--(1) Except as provided in paragraph (2), if an
otherwise eligible individual filed a tort case specified in
subsection (d) before October 30, 2000, such individual shall
be eligible for compensation and benefits under subtitle B.
``(2) If such tort case remained pending as of the date of
the enactment of the National Defense Authorization Act for
Fiscal Year 2002, and such individual does not dismiss such
tort case before December 31, 2003, such individual shall not
be eligible for such compensation or benefits.
``(b) Effect of Tort Cases Filed Between Enactment of
Original Law and Enactment of 2001 Amendments.--(1) Except as
provided in paragraph (2), if an otherwise eligible individual
filed a tort case specified in subsection (d) during the period
beginning on October 30, 2000, and ending on the date of the
enactment of the National Defense Authorization Act for Fiscal
Year 2002, such individual shall not be eligible for such
compensation or benefits.
``(2) If such individual dismisses such tort case on or
before the last permissible date specified in paragraph (3),
such individual shall be eligible for such compensation or
benefits.
``(3) The last permissible date referred to in paragraph
(2) is the later of the following dates:
``(A) April 30, 2003.
``(B) The date that is 30 months after the date the
individual first becomes aware that an illness covered
by subtitle B of a covered employee may be connected to
the exposure of the covered employee in the performance
of duty under section 3623.
``(c) Effect of Tort Cases Filed After Enactment of 2001
Amendments.--(1) If an otherwise eligible individual files a
tort case specified in subsection (d) after the date of the
enactment of the National Defense Authorization Act for Fiscal
Year 2002, such individual shall not be eligible for such
compensation or benefits if a final court decision is entered
against such individual in such tort case.
``(2) If such a final court decision is not entered, such
individual shall nonetheless not be eligible for such
compensation or benefits, except as follows: If such individual
dismisses such tort case on or before the last permissible date
specified in paragraph (3), such individual shall be eligible
for such compensation and benefits.
``(3) The last permissible date referred to in paragraph
(2) is the later of the following dates:
``(A) April 30, 2003.
``(B) The date that is 30 months after the date the
individual first becomes aware that an illness covered
by subtitle B of a covered employee may be connected to
the exposure of the covered employee in the performance
of duty under section 3623.
``(d) Covered Tort Cases.--A tort case specified in this
subsection is a tort case alleging a claim referred to in
section 3643 against a beryllium vendor or atomic weapons
employer.''.
(6) Attorney fees.--Section 3648 (114 Stat. 1654A-
511; 42 U.S.C. 7385g) is amended--
(A) in subsection (a), by inserting after
``the claim of an individual'' the following:
``for payment of lump-sum compensation'';
(B) in subsection (b)(1), by inserting
after ``initial claim'' the following: ``for
payment of lump-sum compensation'';
(C) in subsection (b)(2), by striking
``with respect to any claim'' and all that
follows through the period at the end and
inserting ``with respect to objections to a
recommended decision denying payment of lump-
sum compensation.'';
(D) by redesignating subsection (c) as
subsection (d); and
(E) by inserting after subsection (b) the
following new subsection (c):
``(c) Inapplicability to Other Services.--This section
shall not apply with respect to services rendered that are not
in connection with such a claim for payment of lump-sum
compensation.''.
(b) Study of Residual Contamination of Facilities.--(1) The
National Institute for Occupational Safety and Health shall,
with the cooperation of the Department of Energy and the
Department of Labor, carry out a study on the following
matters:
(A) Whether or not significant contamination
remained in any atomic weapons employer facility or
facility of a beryllium vendor after such facility
discontinued activities relating to the production of
nuclear weapons.
(B) If so, whether or not such contamination could
have caused or substantially contributed to the cancer
of a covered employee with cancer or a covered
beryllium illness, as the case may be.
(2)(A) The National Institute for Occupational Safety and
Health shall submit to the applicable congressional committees
the following reports:
(i) Not later than 180 days after the date of the
enactment of this Act, a report on the progress made as
of the date of the report on the study required by
paragraph (1).
(ii) Not later than one year after the date of the
enactment of this Act, a final report on the study
required by paragraph (1).
(B) In this paragraph, the term ``applicable congressional
committees'' means--
(i) the Committee on Armed Services, Committee on
Appropriations, Committee on the Judiciary, and
Committee on Health, Education, Labor, and Pensions of
the Senate; and
(ii) the Committee on Armed Services, Committee on
Appropriations, Committee on the Judiciary, and
Committee on Education and the Workforce of the House
of Representatives.
(3) Amounts for the study under paragraph (1) shall be
derived from amounts authorized to be appropriated by section
3614(a) of the Energy Employees Occupational Illness
Compensation Program Act of 2000 (114 Stat. 1654A-498).
(4) In this subsection:
(A) The terms ``atomic weapons employer facility'',
``beryllium vendor'', ``covered employee with cancer'',
and ``covered beryllium illness'' have the meanings
given those terms in section 3621 of the Energy
Employees Occupational Illness Compensation Program Act
of 2000 (114 Stat. 1654A-498; 42 U.S.C. 7384l).
(B) The term ``contamination'' means the presence
of any--
(i) material that emitted radiation and was
used in the production of an atomic weapon,
excluding uranium mining and milling; or
(ii) beryllium dust, particles, or vapor,
exposure to which could cause or substantially
contribute to the cancer of a covered employee with
cancer or a covered beryllium illness, as the case may
be.

SEC. 3152. DEPARTMENT OF ENERGY COUNTERINTELLIGENCE POLYGRAPH PROGRAM.

(a) New Counterintelligence Polygraph Program Required.--
The Secretary of Energy shall carry out, under regulations
prescribed under this section, a new counterintelligence
polygraph program for the Department of Energy. The purpose of
the new program is to minimize the potential for release or
disclosure of classified data, materials, or information.
(b) Authorities and Limitations.--(1) The Secretary shall
prescribe regulations for the new counterintelligence polygraph
program required by subsection (a) in accordance with the
provisions of subchapter II of chapter 5 of title 5, United
States Code (commonly referred to as the Administrative
Procedures Act).
(2) In prescribing regulations for the new program, the
Secretary shall take into account the results of the Polygraph
Review.
(3) Not later than six months after obtaining the results
of the Polygraph Review, the Secretary shall issue a notice of
proposed rulemaking for the new program.
(c) Repeal of Existing Polygraph Program.--Effective 30
days after the Secretary submits to the congressional defense
committees the Secretary's certification that the final rule
for the new counterintelligence polygraph program required by
subsection (a) has been fully implemented, section 3154 of the
Department of Energy Facilities Safeguards, Security, and
Counterintelligence Enhancement Act of 1999 (subtitle D of
title XXXI of Public Law 106-65; 42 U.S.C. 7383h) is repealed.
(d) Report on Further Enhancement of Personnel Security
Program.--(1) Not later than January 1, 2003, the Administrator
for Nuclear Security shall submit to Congress a report setting
forth the recommendations of the Administrator for any
legislative action that the Administrator considers appropriate
in order to enhance the personnel security program of the
Department of Energy.
(2) Any recommendations under paragraph (1) regarding the
use of polygraphs shall take into account the results of the
Polygraph Review.
(e) Polygraph Review Defined.--In this section, the term
``Polygraph Review'' means the review of the Committee to
Review the Scientific Evidence on the Polygraph of the National
Academy of Sciences.

SEC. 3153. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO
PAY VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

(a) In General.--Section 3161(a) of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
Stat. 942; 5 U.S.C. 5597 note) is amended by striking ``January
1, 2003'' and inserting ``January 1, 2004''.
(b) Construction.--The amendment made by subsection (a) may
be superseded by another provision of law that takes effect
after the date of the enactment of this Act, and before January
1, 2004, establishing a uniform system for providing voluntary
separation incentives (including a system for requiring
approval of plans by the Office of Management and Budget) for
employees of the Federal Government.

SEC. 3154. ANNUAL ASSESSMENT AND REPORT ON VULNERABILITY OF DEPARTMENT
OF ENERGY FACILITIES TO TERRORIST ATTACK.

(a) In General.--Part C of title VI of the Department of
Energy Organization Act (42 U.S.C. 7251 et seq.) is amended by
adding at the end the following new section:

``annual assessment and report on vulnerability of facilities to
terrorist attack

``Sec. 663. (a) The Secretary shall, on an annual basis,
conduct a comprehensive assessment of the vulnerability of
Department facilities to terrorist attack.
``(b) Not later than January 31 each year, the Secretary
shall submit to Congress a report on the assessment conducted
under subsection (a) during the preceding year. Each report
shall include the results of the assessment covered by such
report, together with such findings and recommendations as the
Secretary considers appropriate.''.
(b) Clerical Amendment.--The table of sections at the
beginning of that Act is amended by inserting after the item
relating to section 662 the following new item:

``Sec. 663. Annual assessment and report on vulnerability of facilities
to terrorist attack.''.

SEC. 3155. DISPOSITION OF SURPLUS DEFENSE PLUTONIUM AT SAVANNAH RIVER
SITE, AIKEN, SOUTH CAROLINA.

(a) Consultation Required.--The Secretary of Energy shall
consult with the Governor of the State of South Carolina
regarding any decisions or plans of the Secretary related to
the disposition of surplus defense plutonium and defense
plutonium materials located at the Savannah River Site, Aiken,
South Carolina.
(b) Notice Required.--For each shipment of defense
plutonium or defense plutonium materials to the Savannah River
Site, the Secretary shall, not less than 30 days before the
commencement of such shipment, submit to the congressional
defense committees a report providing notice of such shipment.
(c) Plan for Disposition.--The Secretary shall prepare a
plan for disposal of the surplus defense plutonium and defense
plutonium materials currently located at the Savannah River
Site and for disposal of defense plutonium and defense
plutonium materials to be shipped to the Savannah River Site in
the future. The plan shall include the following:
(1) A review of each option considered for such
disposal.
(2) An identification of the preferred option for
such disposal.
(3) With respect to the facilities for such
disposal that are required by the Department of
Energy's Record of Decision for the Storage and
Disposition of Weapons-Usable Fissile Materials Final
Programmatic Environmental Impact Statement dated
January 14, 1997--
(A) a statement of the cost of construction
and operation of such facilities;
(B) a schedule for the expeditious
construction of such facilities, including
milestones; and
(C) a firm schedule for funding the cost of
such facilities.
(4) A specification of the means by which all such
defense plutonium and defense plutonium materials will
be removed in a timely manner from the Savannah River
Site for storage or disposal elsewhere.
(d) Plan for Alternative Disposition.--If the Secretary
determines not to proceed at the Savannah River Site with
construction of the plutonium immobilization plant, or with the
mixed oxide fuel fabrication facility, the Secretary shall
prepare a plan that identifies a disposition path for all
defense plutonium and defense plutonium materials that would
otherwise have been disposed of at such plant or such facility,
as applicable.
(e) Submission of Plans.--Not later than February 1, 2002,
the Secretary shall submit to Congress the plan required by
subsection (c) (and the plan prepared under subsection (d), if
applicable).
(f) Limitation on Plutonium Shipments.--If the Secretary
does not submit to Congress the plan required by subsection (c)
(and the plan prepared under subsection (d), if applicable) by
February 1, 2002, the Secretary shall be prohibited from
shipping defense plutonium or defense plutonium materials to
the Savannah River Site during the period beginning on February
1, 2002, and ending on the date on which such plans are
submitted to Congress.
(g) Rule of Construction.--Nothing in this section may be
construed to prohibit or limit the Secretary from shipping
defense plutonium or defense plutonium materials to sites other
than the Savannah River Site during the period referred to in
subsection (f) or any other period.
(h) Annual Report on Funding for Fissile Materials
Disposition Activities.--The Secretary shall include with the
budget justification materials submitted to Congress in support
of the Department of Energy budget for each fiscal year (as
submitted with the budget of the President under section
1105(a) of title 31, United States Code) a report setting forth
the extent to which amounts requested for the Department for
such fiscal year for fissile materials disposition activities
will enable the Department to meet commitments for the
disposition of surplus defense plutonium and defense plutonium
materials located at the Savannah River Site, and for any other
fissile materials disposition activities, in such fiscal year.

SEC. 3156. MODIFICATION OF DATE OF REPORT OF PANEL TO ASSESS THE
RELIABILITY, SAFETY, AND SECURITY OF THE UNITED
STATES NUCLEAR STOCKPILE.

Section 3159(d) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 42
U.S.C. 2121 note) is amended by striking ``of each year,
beginning with 1999,'' and inserting ``of 1999 and 2000, and
not later than February 1, 2002,''.

Subtitle F--Rocky Flats National Wildlife Refuge

SEC. 3171. SHORT TITLE.

This subtitle may be cited as the ``Rocky Flats National
Wildlife Refuge Act of 2001''.

SEC. 3172. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds the following:
(1) The Federal Government, through the Atomic
Energy Commission, acquired the Rocky Flats site in
1951 and began operations there in 1952. The site
remains a Department of Energy facility. Since 1992,
the mission of the Rocky Flats site has changed from
the production of nuclear weapons components to cleanup
and closure in a manner that is safe, environmentally
and socially responsible, physically secure, and cost-
effective.
(2) The majority of the Rocky Flats site has
generally remained undisturbed since its acquisition by
the Federal Government.
(3) The State of Colorado is experiencing
increasing growth and development, especially in the
metropolitan Denver Front Range area in the vicinity of
the Rocky Flats site. That growth and development
reduces the amount of open space and thereby diminishes
for many metropolitan Denver communities the vistas of
the striking Front Range mountain backdrop.
(4) Some areas of the Rocky Flats site contain
contamination and will require further response action.
The national interest requires that the ongoing cleanup
and closure of the entire site be completed safely,
effectively, and without unnecessary delay and that the
site thereafter be retained by the United States and
managed so as to preserve the value of the site for
open space and wildlife habitat.
(5) The Rocky Flats site provides habitat for many
wildlife species, including a number of threatened and
endangered species, and is marked by the presence of
rare xeric tallgrass prairie plant communities.
Establishing the site as a unit of the National
Wildlife Refuge System will promote the preservation
and enhancement of those resources for present and
future generations.
(b) Purposes.--The purposes of this subtitle are--
(1) to provide for the establishment of the Rocky
Flats site as a national wildlife refuge following
cleanup and closure of the site;
(2) to create a process for public input on the
management of the refuge referred to in paragraph (1)
before transfer of administrative jurisdiction to the
Secretary of the Interior; and
(3) to ensure that the Rocky Flats site is
thoroughly and completely cleaned up.

SEC. 3173. DEFINITIONS.

In this subtitle:
(1) CERCLA.--The term ``CERCLA'' means the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601 et seq.).
(2) Cleanup and closure.--The term ``cleanup and
closure'' means the response actions for covered
substances carried out at Rocky Flats, as required by
any of the following:
(A) The RFCA.
(B) CERCLA.
(C) RCRA.
(D) The Colorado Hazardous Waste Act, 25-
15-101 to 25-15-327, Colorado Revised Statutes.
(3) Covered substance.--The term ``covered
substance'' means any of the following:
(A) Any hazardous substance, as such term
is defined in paragraph (14) of section 101 of
CERCLA (42 U.S.C. 9601).
(B) Any pollutant or contaminant, as such
term is defined in paragraph (33) of such
section 101.
(C) Any petroleum, including crude oil or
any fraction thereof which is not otherwise
specifically listed or designated as a
hazardous substance under subparagraphs (A)
through (F) of paragraph (14) of such section
101.
(4) RCRA.--The term ``RCRA'' means the Solid Waste
Disposal Act (42 U.S.C. 6901 et seq.), popularly known
as the Resource Conservation and Recovery Act.
(5) Refuge.--The term ``refuge'' means the Rocky
Flats National Wildlife Refuge established under
section 3177.
(6) Response action.--The term ``response action''
means any of the following:
(A) A response, as such term is defined in
paragraph (25) of section 101 of CERCLA (42
U.S.C. 9601).
(B) A corrective action under RCRA or under
the Colorado Hazardous Waste Act, 25-15-101 to
25-15-327, Colorado Revised Statutes.
(C) Any requirement for institutional
controls imposed by any of the laws referred to
in subparagraph (A) or (B).
(7) RFCA.--The term ``RFCA'' means the Rocky Flats
Cleanup Agreement, an intergovernmental agreement,
dated July 19, 1996, among--
(A) the Department of Energy;
(B) the Environmental Protection Agency;
and
(C) the Department of Public Health and
Environment of the State of Colorado.
(8) Rocky flats.--
(A) In general.--Except as provided in
subparagraph (B), the term ``Rocky Flats''
means the Rocky Flats Environmental Technology
Site, Colorado, a defense nuclear facility, as
depicted on the map titled ``Rocky Flats
Environmental Technology Site'', dated October
22, 2001, and available for inspection in the
appropriate offices of the United States Fish
and Wildlife Service.
(B) Exclusions.--The term ``Rocky Flats''
does not include--
(i) the land and facilities of the
Department of Energy's National
Renewable Energy Laboratory, including
the acres retained by the Secretary
under section 3174(f); and
(ii) any land and facilities not
within the boundaries depicted on the
map referred to in subparagraph (A).
(9) Secretary.--The term ``Secretary'' means the
Secretary of Energy.

SEC. 3174. FUTURE OWNERSHIP AND MANAGEMENT.

(a) Federal Ownership.--Except as expressly provided in
this subtitle, all right, title, and interest of the United
States, held on or acquired after the date of the enactment of
this Act, to land or interest therein, including minerals,
within the boundaries of Rocky Flats shall be retained by the
United States.
(b) Lindsay Ranch.--The structures that comprise the former
Lindsay Ranch homestead site in the Rock Creek Reserve area of
the buffer zone, as depicted on the map referred to in section
3173(8)(A), shall be permanently preserved and maintained in
accordance with the National Historic Preservation Act (16
U.S.C. 470 et seq.).
(c) Prohibition on Annexation.--Neither the Secretary nor
the Secretary of the Interior shall allow the annexation of
land within the refuge by any unit of local government.
(d) Prohibition on Through Roads.--Except as provided in
subsection (e), no public road shall be constructed through
Rocky Flats.
(e) Transportation Right-of-Way.--
(1) In general.--
(A) Availability of land.--On submission of
an application meeting each of the conditions
specified in paragraph (2), the Secretary, in
consultation with the Secretary of the
Interior, shall make available land along the
eastern boundary of Rocky Flats for the sole
purpose of transportation improvements along
Indiana Street.
(B) Boundaries.--Land made available under
this paragraph may not extend more than 300
feet from the west edge of the Indiana Street
right-of-way, as that right-of-way exists as of
the date of the enactment of this Act.
(C) Easement or sale.--Land may be made
available under this paragraph by easement or
sale to one or more appropriate entities.
(D) Compliance with applicable law.--Any
action under this paragraph shall be taken in
compliance with applicable law.
(2) Conditions.--An application referred to in
paragraph (1) meets the conditions specified in this
paragraph if the application--
(A) is submitted by any county, city, or
other political subdivision of the State of
Colorado; and
(B) includes documentation demonstrating
that the transportation improvements for which
the land is to be made available--
(i) are carried out so as to
minimize adverse effects on the
management of Rocky Flats as a wildlife
refuge; and
(ii) are included in the regional
transportation plan of the metropolitan
planning organization designated for
the Denver metropolitan area under
section 5303 of title 49, United States
Code.
(f) Wind Technology Expansion Area.--The Secretary shall
retain, for the use of the National Renewable Energy
Laboratory, the approximately 25 acres identified on the map
referred to in section 3173(8)(A) as the ``Wind Technology
Expansion Area''.

SEC. 3175. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND JURISDICTION
OVER ROCKY FLATS.

(a) Transfer Required.--
(1) In general.--Subject to the other provisions of
this section, the Secretary shall transfer
administrative jurisdiction over the property that is
to comprise the refuge to the Secretary of the
Interior.
(2) Date of transfer.--The transfer shall be
carried out not earlier than the completion
certification date, and not later than 30 business days
after that date.
(3) Completion certification date.--For purposes of
paragraph (2), the completion certification date is the
date on which the Administrator of the Environmental
Protection Agency certifies to the Secretary and to the
Secretary of the Interior that cleanup and closure at
Rocky Flats has been completed, except for the
operation and maintenance associated with response
actions, and that all response actions are operating
properly and successfully.
(b) Memorandum of Understanding.--
(1) Required elements.--The transfer required by
subsection (a) shall be carried out pursuant to a
memorandum of understanding between the Secretary and
the Secretary of the Interior. The memorandum of
understanding shall--
(A) provide for the division of
responsibilities between the Secretary and the
Secretary of the Interior necessary to carry
out such transfer;
(B) address the impacts that any property
rights referred to in section 3179(a) may have
on the management of the refuge, and provide
strategies for resolving or mitigating these
impacts;
(C) identify the land the administrative
jurisdiction of which is to be transferred to
the Secretary of the Interior; and
(D) specify the allocation of the Federal
costs incurred at the refuge after the date of
such transfer for any site investigations,
response actions, and related activities for
covered substances.
(2) Publication of draft.--Not later than one year
after the date of the enactment of this Act, the
Secretary and the Secretary of the Interior shall
publish in the Federal Register a draft of the
memorandum of understanding.
(3) Finalization and implementation.--
(A) Not later than 18 months after the date
of the enactment of this Act, the Secretary and
Secretary of the Interior shall finalize and
implement the memorandum of understanding.
(B) In finalizing the memorandum of
understanding, the Secretary and Secretary of
the Interior shall specifically identify the
land the administrative jurisdiction of which
is to be transferred to the Secretary of the
Interior and provide for a determination of the
exact acreage and legal description of such
land by a survey mutually satisfactory to the
Secretary and the Secretary of the Interior.
(c) Transfer of Improvements.--The transfer required by
subsection (a) may include such buildings or other improvements
as the Secretary of the Interior has requested in writing for
purposes of managing the refuge.
(d) Property Retained for Response Actions.--
(1) In general.--The transfer required by
subsection (a) shall not include, and the Secretary
shall retain jurisdiction, authority, and control over,
the following real property and facilities at Rocky
Flats:
(A) Any engineered structure, including
caps, barrier walls, and monitoring or
treatment wells, to be used in carrying out a
response action for covered substances.
(B) Any real property or facility to be
used for any other purpose relating to a
response action or any other action that is
required to be carried out by the Secretary at
Rocky Flats.
(2) Consultation.--The Secretary shall consult with
the Secretary of the Interior, the Administrator of the
Environmental Protection Agency, and the Governor of
the State of Colorado on the identification of all real
property and facilities to be retained under this
subsection.
(e) Cost.--The transfer required by subsection (a) shall be
completed without cost to the Secretary of the Interior.
(f) No Reduction in Funds.--The transfer required by
subsection (a), and the memorandum of understanding required by
subsection (b), shall not result in any reduction in funds
available to the Secretary for cleanup and closure of Rocky
Flats.

SEC. 3176. ADMINISTRATION OF RETAINED PROPERTY; CONTINUATION OF CLEANUP
AND CLOSURE.

(a) Administration of Retained Property.--
(1) In general.--In administering the property
retained under section 3175(d), the Secretary shall
consult with the Secretary of the Interior to minimize
any conflict between--
(A) the administration by the Secretary of
such property for a purpose relating to a
response action; and
(B) the administration by the Secretary of
the Interior of land the administrative
jurisdiction of which is transferred under
section 3175(a).
(2) Priority in case of conflict.--In the case of
any such conflict, the Secretary and the Secretary of
the Interior shall ensure that the administration for a
purpose relating to a response action, as described in
paragraph (1)(A), shall take priority.
(3) Access.--The Secretary of the Interior shall
provide to the Secretary such access and cooperation
with respect to the refuge as the Secretary requires to
carry out operation and maintenance, future response
actions, natural resources restoration, or any other
obligations.
(b) Ongoing Cleanup and Closure.--
(1) In general.--The Secretary shall carry out to
completion cleanup and closure at Rocky Flats.
(2) Cleanup levels.--The Secretary shall carry out
such cleanup and closure to the levels established for
soil, water, and other media, following a thorough
review by the parties to the RFCA and the public
(including the United States Fish and Wildlife Service
and other interested government agencies) of the
appropriateness of the interim levels in the RFCA.
(3) No restriction on use of new technologies.--
Nothing in this subtitle, and no action taken under
this subtitle, restricts the Secretary from using at
Rocky Flats any new technology that may become
available for remediation of contamination.
(c) Opportunity to Comment.--The Secretary of the Interior
shall have the opportunity to comment with respect to any
proposed response action as to the impacts, if any, of such
proposed response action on the refuge.
(d) Rules of Construction.--
(1) No relief from obligations under other law.--
Nothing in this subtitle, and no action taken under
this subtitle--
(A) relieves the Secretary, the
Administrator of the Environmental Protection
Agency, the Secretary of the Interior, or any
other person from any obligation or other
liability with respect to Rocky Flats under the
RFCA or any Federal or State law;
(B) impairs or alters any provision of the
RFCA; or
(C) alters any authority of the
Administrator of the Environmental Protection
Agency under section 120(e) of CERCLA (42
U.S.C. 9620(e)), or any authority of the State
of Colorado.
(2) Cleanup levels.--Nothing in this subtitle shall
reduce the level of cleanup and closure at Rocky Flats
required under the RFCA or any Federal or State law.
(3) Payment of response action costs.--Nothing in
this subtitle affects the obligation of a Federal
department or agency that had or has operations at
Rocky Flats resulting in the release or threatened
release of a covered substance to pay the costs of
response actions carried out to abate the release of,
or clean up, the covered substance.

SEC. 3177. ROCKY FLATS NATIONAL WILDLIFE REFUGE.

(a) In General.--On completion of the transfer required by
section 3175(a), and subject to section 3176(a), the Secretary
of the Interior shall commence administration of the real
property comprising the refuge in accordance with this
subtitle.
(b) Establishment of Refuge.--Not later than 30 days after
the transfer required by section 3175(a), the Secretary of the
Interior shall establish at Rocky Flats a national wildlife
refuge to be known as the Rocky Flats National Wildlife Refuge.
(c) Composition.--The refuge shall be comprised of the
property the administrative jurisdiction of which was
transferred as required by section 3175(a).
(d) Notice.--The Secretary of the Interior shall publish in
the Federal Register a notice of the establishment of the
refuge.
(e) Administration and Purposes.--
(1) In general.--The Secretary of the Interior
shall manage the refuge in accordance with applicable
law, including this subtitle, the National Wildlife
Refuge System Administration Act of 1966 (16 U.S.C.
668dd et seq.), and the purposes specified in that Act.
(2) Refuge purposes.--The refuge shall be managed
for the purposes of--
(A) restoring and preserving native
ecosystems;
(B) providing habitat for, and population
management of, native plants and migratory and
resident wildlife;
(C) conserving threatened and endangered
species (including species that are candidates
for listing under the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.)); and
(D) providing opportunities for compatible
scientific research.
(3) Management.--In managing the refuge, the
Secretary of the Interior shall--
(A) ensure that wildlife-dependent
recreation and environmental education and
interpretation are the priority public uses of
the refuge; and
(B) comply with all response actions.

SEC. 3178. COMPREHENSIVE PLANNING PROCESS.

(a) In General.--Not later than 180 days after the date of
the enactment of this Act, in developing a comprehensive
conservation plan for the refuge in accordance with section
4(e) of the National Wildlife Refuge System Administration Act
of 1966 (16 U.S.C. 668dd(e)), the Secretary of the Interior
shall establish a comprehensive planning process that involves
the public and local communities. The Secretary of the Interior
shall establish such process in consultation with the
Secretary, the members of the Coalition, the Governor of the
State of Colorado, and the Federal and State of Colorado
officials who have been designated as trustees for Rocky Flats
under section 107(f)(2) of CERCLA (42 U.S.C. 9607(f)(2)).
(b) Other Participants.--In addition to the entities
specified in subsection (a), the comprehensive planning process
required by subsection (a) shall include the opportunity for
direct involvement of entities that are not members of the
Coalition as of the date of the enactment of this Act,
including the Rocky Flats Citizens' Advisory Board and the
cities of Thornton, Northglenn, Golden, Louisville, and
Lafayette, Colorado.
(c) Dissolution of Coalition.--If the Coalition dissolves,
or if any Coalition member elects to leave the Coalition during
the comprehensive planning process required by subsection (a)--
(1) such comprehensive planning process shall
continue; and
(2) an opportunity shall be provided to each entity
that is a member of the Coalition as of September 1,
2000, for direct involvement in such comprehensive
planning process.
(d) Contents.--In addition to the requirements of section
4(e) of the National Wildlife Refuge System Administration Act
of 1966 (16 U.S.C. 668dd(e)), the comprehensive conservation
plan referred to in subsection (a) shall address and make
recommendations on the following:
(1) The identification of any land referred to in
subsection (e) of section 3174 that could be made
available under that subsection.
(2) The characteristics and configuration of any
perimeter fencing that may be appropriate or compatible
for cleanup and closure purposes, refuge purposes, or
other purposes.
(3) The feasibility of locating, and the potential
location for, a visitor and education center at the
refuge.
(4) Any other issues relating to Rocky Flats.
(e) Coalition Defined.--In this section, the term
``Coalition'' means the Rocky Flats Coalition of Local
Governments established by the Intergovernmental Agreement,
dated February 16, 1999, among--
(1) the city of Arvada, Colorado;
(2) the city of Boulder, Colorado;
(3) the city of Broomfield, Colorado;
(4) the city of Westminster, Colorado;
(5) the town of Superior, Colorado;
(6) Boulder County, Colorado; and
(7) Jefferson County, Colorado.
(f) Report.--Not later than three years after the date of
the enactment of this Act, the Secretary of the Interior shall
submit to Congress--
(1) the comprehensive conservation plan referred to
in subsection (a); and
(2) a report that contains--
(A) an outline of the involvement of the
public and local communities in the
comprehensive planning process, as required by
subsection (a);
(B) to the extent that any input or
recommendation from the comprehensive planning
process is not accepted, a clear statement of
the reasons why such input or recommendation is
not accepted; and
(C) a discussion of the impacts of any
property rights referred to in section 3179(a)
on management of the refuge, and an
identification of strategies for resolving and
mitigating these impacts.

SEC. 3179. PROPERTY RIGHTS.

(a) In General.--Except as provided in subsections (c) and
(d), nothing in this subtitle limits any valid, existing
property right at Rocky Flats that is owned by any person or
entity, including, but not limited to--
(1) any mineral right;
(2) any water right or related easement; and
(3) any facility or right-of-way for a utility.
(b) Access.--Except as provided in subsection (c), nothing
in this subtitle affects any right of an owner of a property
right referred to in subsection (a) to access the owner's
property.
(c) Reasonable Conditions.--
(1) In general.--The Secretary or the Secretary of
the Interior may impose such reasonable conditions on
access to property rights referred to in subsection (a)
as are appropriate for the cleanup and closure of Rocky
Flats and for the management of the refuge.
(2) No effect on other law.--Nothing in this
subtitle affects any Federal, State, or local law
(including any regulation) relating to the use,
development, and management of property rights referred
to in subsection (a).
(3) No effect on access rights.--Nothing in this
subsection precludes the exercise of any access right,
in existence on the date of the enactment of this Act,
that is necessary to perfect or maintain a water right
in existence on that date.
(d) Utility Extension.--
(1) In general.--The Secretary or the Secretary of
the Interior may allow not more than one extension from
an existing utility right-of-way on Rocky Flats, if
necessary.
(2) Conditions.--An extension under paragraph (1)
shall be subject to the conditions specified in
subsection (c).
(e) Easement Surveys.--Subject to subsection (c), until the
date that is 180 days after the date of the enactment of this
Act, an entity that possesses a decreed water right or
prescriptive easement relating to land at Rocky Flats may carry
out such surveys at Rocky Flats as the entity determines are
necessary to perfect the right or easement.

SEC. 3180. LIABILITIES AND OTHER OBLIGATIONS.

(a) In General.--Nothing in this subtitle shall relieve,
and no action may be taken under this subtitle to relieve, the
Secretary, the Secretary of the Interior, or any other person
from any liability or other obligation at Rocky Flats under
CERCLA, RCRA, or any other Federal or State law.
(b) Cost Recovery, Contribution, and Other Action.--Nothing
in this subtitle is intended to prevent the United States from
bringing a cost recovery, contribution, or other action that
would otherwise be available under Federal or State law.

SEC. 3181. ROCKY FLATS MUSEUM.

(a) Museum.--To commemorate the contribution that Rocky
Flats and its worker force provided to winning the Cold War and
the impact that such contribution has had on the nearby
communities and the State of Colorado, the Secretary may
establish a Rocky Flats Museum.
(b) Location.--The Rocky Flats Museum shall be located in
the city of Arvada, Colorado, unless, after consultation under
subsection (c), the Secretary determines otherwise.
(c) Consultation.--The Secretary shall consult with the
city of Arvada, other local communities, and the Colorado State
Historical Society on--
(1) the development of the museum;
(2) the siting of the museum; and
(3) any other issues relating to the development
and construction of the museum.
(d) Report.--Not later than three years after the date of
the enactment of this Act, the Secretary, in coordination with
the city of Arvada, shall submit to Congress a report on the
costs associated with the construction of the museum and any
other issues relating to the development and construction of
the museum.

SEC. 3182. ANNUAL REPORT ON FUNDING.

For each of fiscal years 2003 through 2007, at the time of
submission of the budget of the President under section 1105(a)
of title 31, United States Code, for such fiscal year, the
Secretary and the Secretary of the Interior shall jointly
submit to Congress a report on the costs of implementation of
this subtitle. The report shall include--
(1) the costs incurred by each Secretary in
implementing this subtitle during the preceding fiscal
year; and
(2) the funds required by each Secretary to
implement this subtitle during the current and
subsequent fiscal years.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year
2002, $18,500,000 for the operation of the Defense Nuclear
Facilities Safety Board under chapter 21 of the Atomic Energy
Act of 1954 (42 U.S.C. 2286 et seq.).

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

SEC. 3301. DEFINITIONS.

In this title:
(1) The term ``National Defense Stockpile'' means
the stockpile provided for in section 4 of the
Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98c).
(2) The term ``National Defense Stockpile
Transaction Fund'' means the fund established under
section 9(a) of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98h(a)).
(3) The term ``Market Impact Committee'' means the
Market Impact Committee appointed under section 10(c)
of the Strategic and Critical Materials Stock Piling
Act (50 U.S.C. 98h-1(c)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

(a) Obligation of Stockpile Funds.--During fiscal year
2002, the National Defense Stockpile Manager may obligate up to
$65,200,000 of the funds in the National Defense Stockpile
Transaction Fund for the authorized uses of such funds under
section 9(b)(2) of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98h(b)(2)), including the disposal of
hazardous materials that are environmentally sensitive.
(b) Additional Obligations.--The National Defense Stockpile
Manager may obligate amounts in excess of the amount specified
in subsection (a) if the National Defense Stockpile Manager
notifies Congress that extraordinary or emergency conditions
necessitate the additional obligations. The National Defense
Stockpile Manager may make the additional obligations described
in the notification after the end of the 45-day period
beginning on the date on which Congress receives the
notification.
(c) Limitations.--The authorities provided by this section
shall be subject to such limitations as may be provided in
appropriations Acts.

SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN NATIONAL
DEFENSE STOCKPILE.

(a) Disposal Authorized.--Subject to the conditions
specified in subsection (b), the President may dispose of
obsolete and excess materials contained in the National Defense
Stockpile. The materials subject to disposal under this
subsection and the quantity of each material authorized to be
disposed of by the President are set forth in the following
table:

Authorized Stockpile Disposals
------------------------------------------------------------------------
Material for disposal Quantity
------------------------------------------------------------------------
Bauxite................................... 40,000 short tons
Chromium Metal............................ 3,512 short tons
Iridium................................... 25,140 troy ounces
Jewel Bearings............................ 30,273,221 pieces
Manganese Ferro HC........................ 209,074 short tons
Palladium................................. 11 troy ounces
Quartz Crystal............................ 216,648 pounds
Tantalum Metal Ingot...................... 120,228 pounds contained
Tantalum Metal Powder..................... 36,020 pounds contained
Thorium Nitrate........................... 600,000 pounds.
------------------------------------------------------------------------

(b) Minimization of Disruption and Loss.--The President may
not dispose of materials under subsection (a) to the extent
that the disposal will result in--
(1) undue disruption of the usual markets of
producers, processors, and consumers of the materials
proposed for disposal; or
(2) avoidable loss to the United States.
(c) Relationship to Other Disposal Authority.--The disposal
authority provided in subsection (a) is new disposal authority
and is in addition to, and shall not affect, any other disposal
authority provided by law regarding the materials specified in
such subsection.

SEC. 3304. REVISION OF LIMITATIONS ON REQUIRED DISPOSALS OF CERTAIN
MATERIALS IN NATIONAL DEFENSE STOCKPILE.

(a) Public Law 105-261.--Section 3303 of the Strom Thurmond
National Defense Authorization Act for Fiscal Year 1999 (Public
Law 105-261; 50 U.S.C. 98d note) is amended--
(1) in subsection (a)--
(A), by striking ``the amount of--'' and
inserting ``total amounts not less than--'';
(B) by striking ``and'' at the end of
paragraph (3); and
(C) by striking paragraph (4) and inserting
the following new paragraphs:
``(4) $760,000,000 by the end of fiscal year 2005;
and
``(5) $770,000,000 by the end of fiscal year
2011.''; and
(2) in subsection (b)(2), by striking ``receipts in
the amounts specified in subsection (a)'' and inserting
``receipts in the total amount specified in subsection
(a)(5)''.
(b) Public Law 105-85.--Section 3305 of the National
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 50 U.S.C. 98d note) is amended--
(1) in subsection (a), by striking ``amounts equal
to--'' and inserting ``total amounts not less than--'';
and
(2) in subsection (b), by striking paragraph (2)
and inserting the following new paragraph:
``(2) The President may not dispose of cobalt under this
section in fiscal year 2006 in excess of the disposals
necessary to result in receipts during that fiscal year in the
total amount specified in subsection (a)(5).''.
(c) Public Law 104-201.--Section 3303 of the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201; 50 U.S.C. 98d note) is amended--
(1) in subsection (a), by striking ``amounts equal
to--'' and inserting ``total amounts not less than--'';
and
(2) in subsection (b), by striking paragraph (2)
and inserting the following new paragraph:
``(2) The President may not dispose of materials under this
section during the 10-fiscal year period referred to in
subsection (a)(2) in excess of the disposals necessary to
result in receipts during that period in the total amount
specified in such subsection.''.

SEC. 3305. ACCELERATION OF REQUIRED DISPOSAL OF COBALT IN NATIONAL
DEFENSE STOCKPILE.

Section 3305(a) of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105-85; 50 U.S.C. 98d note),
as amended by section 3304(b) of this Act, is amended--
(1) in paragraph (1), by striking ``2003'' and
inserting ``2002'';
(2) in paragraph (2), by striking ``2004'' and
inserting ``2003'';
(3) in paragraph (3), by striking ``2005'' and
inserting ``2004'';
(4) in paragraph (4), by striking ``2006'' and
inserting ``2005''; and
(5) in paragraph (5), by striking ``2007'' and
inserting ``2006''.

SEC. 3306. RESTRICTION ON DISPOSAL OF MANGANESE FERRO.

(a) Temporary Quantity Restrictions.--During fiscal years
2002 through 2005, the disposal of manganese ferro in the
National Defense Stockpile may not exceed the following
quantities:
(1) During fiscal year 2002, 25,000 short tons of
all grades of manganese ferro.
(2) During fiscal year 2003, 25,000 short tons of
high carbon manganese ferro of the highest grade.
(3) During each of the fiscal years 2004 and 2005,
50,000 short tons of high carbon manganese ferro of the
highest grade.
(b) Conforming Amendment.--Section 3304 of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 629) is repealed.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

(a) Amount.--There are hereby authorized to be appropriated
to the Secretary of Energy $17,371,000 for fiscal year 2002 for
the purpose of carrying out activities under chapter 641 of
title 10, United States Code, relating to the naval petroleum
reserves.
(b) Period of Availability.--Funds appropriated pursuant to
the authorization of appropriations in subsection (a) shall
remain available until expended.

TITLE XXXV--MARITIME ADMINISTRATION

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2002.

Funds are hereby authorized to be appropriated for fiscal
year 2002, to be available without fiscal year limitation if so
provided in appropriations Acts, for the use of the Department
of Transportation for the Maritime Administration as follows:
(1) For expenses necessary for operations and
training activities, $89,054,000.
(2) For expenses under the loan guarantee program
authorized by title XI of the Merchant Marine Act, 1936
(46 App. U.S.C. 1271 et seq.), $103,978,000, of which--
(A) $100,000,000 is for the cost (as
defined in section 502(5) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5))) of loan
guarantees under the program; and
(B) $3,978,000 is for administrative
expenses related to loan guarantee commitments
under the program.
(3) For expenses to dispose of obsolete vessels in
the National Defense Reserve Fleet, $10,000,000.

SEC. 3502. DEFINE ``WAR RISKS'' TO VESSELS TO INCLUDE CONFISCATION,
EXPROPRIATION, NATIONALIZATION, AND DEPRIVATION OF
THE VESSELS.

Section 1201(c) of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1281(c)) is amended to read as follows:
``(c) The term `war risks' includes to such extent as the
Secretary may determine--
``(1) all or any part of any loss that is excluded
from marine insurance coverage under a `free of capture
or seizure' clause, or under analogous clauses; and
``(2) other losses from hostile acts, including
confiscation, expropriation, nationalization, or
deprivation.''.

SEC. 3503. HOLDING OBLIGOR'S CASH AS COLLATERAL UNDER TITLE XI OF
MERCHANT MARINE ACT, 1936.

Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C.
1271 et seq.) is amended by inserting after section 1108 the
following:

``SEC. 1109. DEPOSIT FUND.

``(a) Establishment of Deposit Fund.--There is established
in the Treasury a deposit fund for purposes of this section.
The Secretary may, in accordance with an agreement under
subsection (b), deposit into and hold in the deposit fund cash
belonging to an obligor to serve as collateral for a guarantee
under this title made with respect to the obligor.
``(b) Agreement.--
``(1) In general.--The Secretary and an obligor
shall enter into a reserve fund or other collateral
account agreement to govern the deposit, withdrawal,
retention, use, and reinvestment of cash of the obligor
held in the deposit fund established by subsection (a).
``(2) Terms.--The agreement shall contain such
terms and conditions as are required under this section
and such additional terms as are considered by the
Secretary to be necessary to protect fully the
interests of the United States.
``(3) Security interest of united states.--The
agreement shall include terms that grant to the United
States a security interest in all amounts deposited
into the deposit fund.
``(c) Investment.--The Secretary may invest and reinvest
any part of the amounts in the deposit fund established by
subsection (a) in obligations of the United States with such
maturities as ensure that amounts in the deposit fund will be
available as required for purposes of agreements under
subsection (b). Cash balances of the deposit fund in excess of
current requirements shall be maintained in a form of
uninvested funds and the Secretary of the Treasury shall pay
interest on these funds.
``(d) Withdrawals.--
``(1) In general.--The cash deposited into the
deposit fund established by subsection (a) may not be
withdrawn without the consent of the Secretary.
``(2) Use of income.--Subject to paragraph (3), the
Secretary may pay any income earned on cash of an
obligor deposited into the deposit fund in accordance
with the terms of the agreement with the obligor under
subsection (b).
``(3) Retention against default.--The Secretary may
retain and offset any or all of the cash of an obligor
in the deposit fund, and any income realized thereon,
as part of the Secretary's recovery against the obligor
in case of a default by the obligor on an
obligation.''.
And the House agree to the same.
From the Committee on Armed Services, for
consideration of the Senate Bill and the House
amendment, and modifications committed to
conference:
Bob Stump,
Duncan Hunter,
James V. Hansen,
Curt Weldon,
Jim Saxton,
John M. McHugh,
Terry Everett,
Roscoe G. Bartlett,
Howard ``Buck'' McKeon,
J.C. Watts, Jr.,
Mac Thornberry,
Saxby Chambliss,
Ike Skelton,
Solomon P. Ortiz,
Lane Evans,
Neil Abercrombie,
Martin T. Meehan,
Robert A. Underwood,
Thomas Allen,
Vic Snyder,
From the Committee on Education and the
Workforce, for consideration of secs. 304, 305,
1123, 3151, and 3157 of the Senate bill, and
secs. 341, 342, 509, and 584 of the House
amendment, and modifications committed to
conference:
Michael N. Castle,
Johnny Isakson,
George Miller,
From the Committee on Government Reform, for
consideration of secs. 564, 622, 803, 813, 901,
1044, 1047, 1051, 1065, 1075, 1102, 1111-1113,
1124-1126, 2832, 3141, 3144, and 3153 of the
Senate bill, and secs. 333, 519, 588, 802, 803,
811-819, 1101, 1103-1108, 1110, and 3132 of the
House amendment, and modifications committed to
conference:
Dan Burton,
Dave Weldon,
Henry A. Waxman,
Provided that Mr. Tom Davis of Virginia is
appointed in lieu of Mr. Weldon of Florida for
consideration of secs. 803 and 2832 of the
Senate bill, and secs. 333 and 803 of the House
amendment, and modifications committed to
conference:
Tom Davis,
Provided that Mr. Horn is appointed in lieu of
Mr. Weldon of Florida for consideration of
secs. 811-819 of the House amendment, and
modifications committed to conference:
Stephen Horn,
From the Committee on House Administration, for
consideration of secs. 572, 574-577, and 579 of
the Senate bill, and sec. 552 of the House
amendment, and modifications committed to
conference:
Robert W. Ney,
John L. Mica,
From the Committee on International Relations,
for consideration of secs. 331, 333, 1201-1205,
and 1211-1218 of the Senate bill, and secs.
1011, 1201, 1202, 1205, and 1209, title XIII,
and sec. 3133 of the House amendment, and
modifications committed to conference:
Henry Hyde,
Ben Gilman,
Tom Lantos,
From the Committee on the Judiciary, for
consideration of secs. 821, 1066, and 3151 of
the Senate bill, and secs. 323 and 818 of the
House amendment, and modifications committed to
conference:
F. James Sensenbrenner, Jr.,
Lamar Smith,
From the Committee on Resources, for
consideration of secs. 601, 663, 2823, and
3171-3181 of the Senate bill, and secs. 601,
1042, 2841, 2845, 2861-2863, and 2865 and title
XXIX of the House amendment, and modifications
committed to conference:
Jim Gibbons,
George Radanovich,
Provided that Mr. Udall of Colorado is
appointed in lieu of Mr. Rahall for
consideration of secs. 3171-3181 of the Senate
bill, and modifications committed to
conference:
Mark Udall,
From the Committee on Science, for
consideration of secs. 1071 and 1124 of the
Senate bill, and modifications committed to
conference:
Sherwood Boehlert,
Nick Smith,
Ralph M. Hall,
Provided that Mr. Ehlers is appointed in lieu
of Mr. Smith of Michigan for consideration of
sec. 1124 of the Senate bill, and modifications
committed to conference:
Vernon J. Ehlers,
From the Committee on Small Business, for
consideration of secs. 822-824 and 1068 of the
Senate bill, and modifications committed to
conference:
Donald A. Manzulo,
Larry Combest,
From the Committee on Transportation and
Infrastructure, for consideration of secs. 563,
601, and 1076 of the Senate bill, and secs.
543, 544, 601, 1049, and 1053 of the House
amendment, and modifications committed to
conference:
Don Young,
Frank A. LoBiondo,
Corrine Brown,
Provided that Mr. Pascrell is appointed in lieu
of Ms. Brown of Florida for consideration of
sec. 1049 of the House amendment, and
modifications committed to conference:
Bill Pascrell, Jr.,
From the Committee on Veterans' Affairs, for
consideration of secs. 538, 539, 573, 651, 717,
and 1064 of the Senate bill, and sec. 641 of
the House amendment, and modifications
committed to conference:
Christopher H. Smith,
(except sec. 641 of House
amendment and secs. 539
and 651 of Senate bill),
Mike Bilirakis,
Managers on the Part of the House.

Carl Levin,
Ted Kennedy,
Joseph Lieberman,
Max Cleland,
Mary Landrieu,
Jack Reed,
Daniel K. Akaka,
Bill Nelson,
Ben Nelson,
Jean Carnahan,
Mark Dayton,
Jeff Bingaman,
John Warner,
Strom Thurmond,
Bob Smith,
Jim Inhofe,
Rick Santorum,
Pat Roberts,
Wayne Allard,
Tim Hutchinson,
Jeff Sessions,
Susan Collins,
Jim Bunning,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the House to the bill (S. 1438), to authorize
appropriations for fiscal year 2002 for military activities of
the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Forces,
and for other purposes, submit the following joint statement to
the House and the Senate in explanation of the effect of the
action agreed upon by the managers and recommended in the
accompanying conference report:
The House amendment struck all of the Senate bill after
the enacting clause and inserted a substitute text.
The Senate recedes from its disagreement to the amendment
of the House with an amendment that is a substitute for the
Senate bill and the House amendment. The differences between
the Senate bill, the House amendment, and the substitute agreed
to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clerical
changes.

Summary Statement of Conference Action

The conferees recommend authorization of appropriations
for fiscal year 2002 for the Department of Defense for
procurement; research and development; test and evaluation;
operation and maintenance; working capital funds; military
construction and family housing; and for weapons and
environmental restoration programs of the Department of Energy,
that have a budget authority implication of $343.3 billion for
the national defense function.

Summary Table of Authorizations

The defense authorization act provides authorizations for
appropriations but does not generally provide budget authority.
Budget authority is provided in appropriations acts.
In order to relate the conference recommendations to the
Budget Resolution, matters in addition to the dollar
authorizations contained in this bill must be taken into
account. A number of programs in the national defense function
are authorized permanently or, in certain instances, authorized
in other annual legislation.
The following table summarizes authorizations included in
the bill for fiscal year 2002 and, in addition, summarizes the
implications of the conference action for the budget authority
totals for national defense (budget function 050).

Congressional Defense Committees

The term ``congressional defense committees'' is often
used in this statement of managers. It means the Defense
Authorization and Appropriations Committees of the Senate and
the House of Representatives.

Committee Reports

The Senate bill contained a provision (sec. 4) regarding
the applicability of the report of the Committee on Armed
Services of the Senate to accompany S. 1416 to this bill.
The House amendment contained no similar provision.
The Senate recedes. The conferees agree that the report
of the Committee on Armed Services of the Senate to accompany
S. 1416 (Senate Report 107-62) shall apply to this Act to the
same extent, and in the same manner, as the report of the
Committee on Armed Services of the House of Representatives to
accompany H.R. 2586 (House Report 107-194).

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

Title I--Procurement

Procurement overview
The budget request for fiscal year 2002 included an
authorization of $61,813.6 million for Procurement for the
Department of Defense.
The Senate bill would authorize $62,532.7 million.
The House amendment would authorize $62,312.8 million.
The conferees recommended an authorization of $62,477.7
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Management reform initiatives
The conferees agree to reduce procurement accounts by
$90.0 million to reflect savings from management reform
initiatives, as discussed in Title VIII.
Aircraft Procurement, Army--Overview
The budget request for fiscal year 2002 included an
authorization of $1,925.5 million for Aircraft Procurement,
Army in the Department of Defense.
The Senate bill would authorize $2,123.4 million.
The House amendment would authorize $1,987.5 million.
The conferees recommended an authorization of $2,075.4
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Missile Procurement, Army--Overview
The budget request for fiscal year 2002 included an
authorization of $1,859.6 million for Missile Procurement, Army
in the Department of Defense.
The Senate bill would authorize $1,807.4 million.
The House amendment would authorize $1,097.3 million.
The conferees recommended an authorization of $1,087.0
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Procurement of Weapons and Tracked Combat Vehicles, Army--Overview
The budget request for fiscal year 2002 included an
authorization of $2,276.7 million for Procurement of Weapons
and Tracked Combat Vehicles, Army in the Department of Defense.
The Senate bill would authorize $2,276.7 million.
The House amendment would authorize $2,367.0 million.
The conferees recommended an authorization of $2,348.1
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Procurement of Ammunition, Army--Overview
The budget request for fiscal year 2002 included an
authorization of $1,193.4 million for Procurement of
Ammunition, Army in the Department of Defense.
The Senate bill would authorize $1,187.6 million.
The House amendment would authorize $1,208.6 million.
The conferees recommended an authorization of $1,187.2
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Other Procurement, Army--Overview
The budget request for fiscal year 2002 included an
authorization of $3,961.7 million for Other Procurement, Army
in the Department of Defense.
The Senate bill would authorize $4,024.5 million.
The House amendment would authorize $4,144.0 million.
The conferees recommended an authorization of $4,044.1
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Chemical Agents and Munitions Destruction, Army--Overview
The budget request for fiscal year 2002 included an
authorization of $1,153.6 million for Chemical Agents &
Munitions Destruction, Army in the Department of Defense.
The Senate bill would authorize $1,153.6 million for
Chemical Agents & Munitions Destruction, Defense.
The House amendment would authorize $1,078.6 million for
Chemical Agents & Munitions Destruction, Defense.
The conferees recommended an authorization of $1,153.6
million for Chemical Agents & Munitions Destruction, Defense.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

Aircraft Procurement, Navy--Overview
The budget request for fiscal year 2002 included an
authorization of $8,252.5 million for Aircraft Procurement,
Navy in the Department of Defense.
The Senate bill would authorize $8,169.0 million.
The House amendment would authorize $8,337.2 million.
The conferees recommended an authorization of $8,323.1
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Weapons Procurement, Navy--Overview
The budget request for fiscal year 2002 included an
authorization of $1,433.5 million for Weapons Procurement, Navy
in the Department of Defense.
The Senate bill would authorize $1,503.5 million.
The House amendment would authorize $1,476.7 million.
The conferees recommended an authorization of $1,484.3
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Procurement of Ammunition, Navy and Marine Corps--Overview
The budget request for fiscal year 2002 included an
authorization of $457.1 million for Procurement of Ammunition,
Navy and Marine Corps in the Department of Defense.
The Senate bill would authorize $476.1 million.
The House amendment would authorize $463.6 million.
The conferees recommended an authorization of $466.9
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Shipbuilding and Conversion, Navy--Overview
The budget request for fiscal year 2002 included an
authorization of $9,344.1 million for Shipbuilding and
Conversion, Navy in the Department of Defense.
The Senate bill would authorize $9,522.1 million.
The House amendment would authorize $9,378.2 million.
The conferees recommended an authorization of $9,371.0
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Other Procurement, Navy--Overview
The budget request for fiscal year 2002 included an
authorization of $4,097.6 million for Other Procurement, Navy
in the Department of Defense.
The Senate bill would authorize $4,293.5 million.
The House amendment would authorize $4,157.3 million.
The conferees recommended an authorization of $4,282.5
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Procurement, Marine Corps--Overview
The budget request for fiscal year 2002 included an
authorization of $981.7 million for Procurement, Marine Corps
in the Department of Defense.
The Senate bill would authorize $981.7 million.
The House amendment would authorize $1,025.6 million.
The conferees recommended an authorization of $1,014.6
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Aircraft Procurement, Air Force--Overview
The budget request for fiscal year 2002 included an
authorization of $10,744.5 million for Aircraft Procurement,
Air Force in the Department of Defense.
The Senate bill would authorize $10,893.0 million.
The House amendment would authorize $10,705.7 million.
The conferees recommended an authorization of $10,789.2
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

High altitude endurance unmanned aerial vehicle
The budget request included $33.5 million for advanced
procurement of additional Global Hawk high altitude endurance
unmanned aerial vehicles (HAE-UAVs).
The Senate bill and the House amendment would authorize
the budget request.
The House Intelligence Authorization for fiscal year 2002
(H.R. 2883) would not authorize any of the requested funds.
The conferees agree to authorize the budget request.
The conferees are aware that much has been evolving in
the Global Hawk HAE-UAV program in recent months. At the time
of the budget request, the plan for these funds was to procure
HAE-UAVs in the less capable Block 5 configuration, which
contributed to the House recommendation. The accelerated
program that is now underway would make these funds available
for advanced procurement of the Block 10 configuration, which
will provide the electrical power, cooling, and interfaces for
sensor packages, which should meet the evolving Global Hawk
requirement. These changes have addressed some of the concerns
expressed in the House report (H. Rept. 107-219).
Another concern shared by the conferees is the fact that
the requirements for this system are evolving at the very time
that the program is being accelerated. The conferees would
expect requirements documentation with completed mission area
annexes to be the basis for future program decisions. The
conferees want to ensure that existing intelligence,
surveillance, and reconnaissance (ISR) assets, such as the U-2,
continue to be operated and upgraded as necessary until such
time that any new systems, like the Global Hawk HAE-UAV and its
sensors, are fully tested and integrated with the required
ground architecture and satisfy the operational mission
requirements.
Finally, the conferees expect, before these advanced
procurement funds are released, that the milestone decision
authority approve this production in an acquisition decision
memorandum that approves a coordinated and integrated
acquisition strategy, taking into account the requirement,
platform and sensor integration, ground architecture plan, and
test plan for this spiral of the program.
Missile Procurement, Air Force--Overview
The budget request for fiscal year 2002 included an
authorization of $3,233.5 million for Missile Procurement, Air
Force in the Department of Defense.
The Senate bill would authorize $3,286.1 million.
The House amendment would authorize $3,226.3 million.
The conferees recommended an authorization of $3,222.6
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Procurement of Ammunition, Air Force--Overview
The budget request for fiscal year 2002 included an
authorization of $865.3 million for Procurement of Ammunition,
Air Force in the Department of Defense.
The Senate bill would authorize $885.3 million.
The House amendment would authorize $871.3 million.
The conferees recommended an authorization of $881.8
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Other Procurement, Air Force--Overview
The budget request for fiscal year 2002 included an
authorization of $8,159.5 million for Other Procurement, Air
Force in the Department of Defense.
The Senate bill would authorize $8,081.7 million.
The House amendment would authorize $8,250.8 million.
The conferees recommended an authorization of $8,196.0
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Procurement, Defense-Wide--Overview
The budget request for fiscal year 2002 included an
authorization of $1,603.9 million for Procurement, Defense-Wide
in the Department of Defense.
The Senate bill would authorize $1,596.7 million.
The House amendment would authorize $2,267.3 million.
The conferees recommended an authorization of $2,279.5
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Chemical Agents and Munitions Destruction, Defense--Overview
The budget request for fiscal year 2002 included an
authorization of $1,153.6 million for Chemical Agents &
Munitions Destruction, Army in the Department of Defense.
The Senate bill would authorize $1,153.6 million.
The House amendment would authorize $1,078.6 million.
The conferees recommended an authorization of $1,153.6
million for Chemical Agents & Munitions Destruction, Defense.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

Items of Special Interest

Acquisition programs at the National Reconnaissance Office
The Senate report (S. Rept. 107-62) raised several
concerns about acquisition programs at the National Imagery and
Mapping Agency (NIMA). The report expressed concern that the
requirements trade-off process for the future imagery
architecture (FIA) may not have provided sufficient attention
to all aspects of an end-to-end capability, focusing too
narrowly on the collection aspects of the problem.
The Senate report insisted that the requirements trade-
off process consider the complete picture, not just the more
narrow question of the collection instrument. The report
further directed the Secretary of Defense and the Director of
Central Intelligence to ensure that the acquisition policies of
the Office of the Secretary of Defense, the Community
Management Staff, and the National Reconnaissance Office (NRO)
be changed to prevent recurrences of these problems at the
NIMA. The report stated that these policies should prevent NRO
satellite programs from entering acquisition until the Joint
Requirements Oversight Council (JROC) and Mission Requirements
Board (MRB) have approved a set of requirements for end-to-end
system performance (i.e., ground and space segments together),
and cost and schedule estimates to meet those requirements have
been prepared by the NRO and its mission partners or other
appropriate organizations.
The report accompanying the House amendment (H. Rept.
107-194) expressed no similar sentiment.
The conferees agree that the requirements trade-off
process should consider the entire end-to-end system, not just
the collection instruments. NRO satellite programs should
include an assessment of the costs and impacts to the mission
partners before being approved to enter acquisition. The JROC
and MRB should also have an approved set of requirements for
end-to-end system performance, i.e., ground, communications and
space segments together. Complete cost and schedule estimates
to meet these requirements should be presented by the NRO and
its mission partners or other appropriate organizations and
presented to the Director of Central Intelligence, the
Secretary of Defense, and Congress.
However, the conferees do not believe that this should be
an absolute prohibition placed on all NRO systems. For example,
there are technology demonstration activities and other non-
major systems procurement where spending resources on fielding
an end-to-end capability is neither required nor appropriate.
The conferees believe that there has been progress in
this area, but that the Secretary of Defense and the DCI should
further ensure major new acquisition programs that support
national-level requirements and the Department of Defense
customers have completed the appropriate level of documentation
in a formal requirements process, and the cost and schedule
estimates to meet these end-to-end requirements have been
prepared, before such programs enter into acquisition.
Acquisition programs at the National Security Agency
The Senate report (S. Rept. 107-62) raised several
concerns about acquisition programs at the National Security
Agency (NSA). The report noted that the Director of the NSA has
made progress in transforming the NSA. The report, however,
expressed concern that more progress needs to be made in the
NSA processes if the NSA is to achieve the capabilities that
the nation will require.
The report identified a number of specific actions that
the NSA would have to complete before December 1, 2001.
Otherwise, the report would direct that the NSA modernization
effort be designated a major defense acquisition program and
milestone decision authority reside with the Under Secretary of
Defense (Acquisition, Technology & Logistics).
In light of the problems identified in the Senate report,
the report would direct that the Office of the Secretary of
Defense (OSD) and the Community Management Staff (CMS) conduct
a ``baselining'' of the NSA that parallels the successful and
productive effort performed at the National Imagery and Mapping
Agency in fiscal year 2001. There were a number of specific
actions identified in the Senate report to help improve the
situation at the NSA, including the following:
(1) The NSA must create a rational requirements
process and produce a prioritized requirements baseline
that is structured to support a spiral-development
approach to major elements of the modernization
program;
(2) The NSA must produce a rationalized, integrated
schedule and requirements allocation for all the major
elements of its modernization effort;
(3) The NSA must develop plans for turning over
most or all of the systems integration job to a single
industry team;
(4) The NSA must create a detailed plan to
subordinate the interim Trailblazer program under the
Objective Trailblazer program upon contract award;
(5) The NSA must produce a detailed audit of all
the hundreds of ongoing development activities and
programs within the Agency;
(6) The NSA must produce a detailed plan and
schedule to establish a rigorous ``make-versus-buy''
decision process for all the NSA acquisition
activities; and
(7) The NSA must produce a plan acceptable to the
Department of Defense and the Director of Central
Intelligence for enterprise-wide systems engineering.
The House report (H. Rept. 107-194) expressed no similar
sentiments.
The conferees believe that the senior acquisition
executive (SAE) and the NSA have made significant improvements
in the acquisition process. For example, the SAE has initiated
an orderly review process and has increased the percentage of
competitive acquisitions.
However, much needed progress still remains to be
achieved. The SAE is operating within a requirements and
architecture vacuum, is not responsible for technology
selection, has no control over correcting deficiencies in
systems or software engineering disciplines, and appears to
lack the authority to cancel or redirect troubled programs. The
chief financial manager (CFM) is understaffed and has struggled
to gain internal support to implement a cost accounting system
that would enable the NSA to conduct an accurate financial
baselining of all programs.
To its credit, the NSA has acknowledged that its major
modernization programs were proceeding in isolation, and over
the past several months, there has been an attempt to address
the integration problem within the Signals Intelligence
Directorate. However, such revelations must be accompanied by
concrete plans for improvement.
The conferees agree with the need for the OSD and the CMS
to enforce the baselining activities identified in the Senate
report. In addition to the specific tasks identified above, the
baselining effort should oversee and verify effective
implementation of the CFM's plans for cost centers that will
comprise the fiscal year 2003 budget request. The conferees
further encourage the NSA to seek the advice of independent,
outside experts to assist in guiding its selection of
technologies under this baselining effort.
The conferees agree that, unless the OSD, the CMS and the
NSA complete the baselining by December 1, 2002, the Congress
will direct that the NSA's modernization effort be designated a
major defense acquisition program, with milestone decision
authority likely residing with the Under Secretary of Defense
(Acquisition, Technology, and Logistics) until initial
operational capability is achieved.
Airborne signals intelligence recapitalization and modernization
The conferees remain interested in sustaining and
improving airborne reconnaissance platforms, sensors and
payloads, and the architecture under which they operate. These
systems provide theater and operational commanders with the
bulk of real-time tactical imagery and signals intelligence
(SIGINT).
The current fleet of reconnaissance platforms, consisting
of the RC-135, the EP-3, and the U-2, is aging. In addition to
the platforms under development, including the Aerial Common
Sensor and the Global Hawk High Altitude Endurance Unmanned
Aerial Vehicle (HAE-UAV), the conferees are aware of Army, Navy
and Air Force initiatives to consider the replacement of their
older reconnaissance platforms.
The conferees are also aware of the current status of
collection systems used by the reconnaissance platforms, and
are particularly concerned with SIGINT systems. The recent
cancellation of the low-band subsystem (LBSS) portion of the
Joint SIGINT Avionics Family (JSAF) program has necessitated a
complete review of the way ahead for this vital capability.
Although the development of the JSAF high-band subsystem has
been more successful, without LBSS the SIGINT requirement will
not have been fully met. Prior to establishment of the JSAF
program, the individual services had disparate upgrade
programs. Although technology sharing occurred, it was sporadic
and uncoordinated.
The Department of Defense's approach must be coordinated
and based on architectural standards. The conferees are pleased
with the National Security Agency efforts to develop the Joint
Airborne SIGINT Architecture and the associated maritime SIGINT
architecture. The conferees believe the Assistant Secretary of
Defense for Command, Control, Communications, and Intelligence
should develop an architectural plan to provide standards-based
policy direction to the services, whose platform program
offices can develop systems and, to the maximum extent
possible, share developments. The conferees expect the plan to
include: (1) a robust spiral development approach; and (2)
adequate emphasis on fielding and modernizing the appropriate
ground support infrastructure.
The conferees believe the time is right to begin the
formal discussion of the recapitalization and modernization of
the airborne signals intelligence platforms, systems, and
architecture. The conferees are specifically not endorsing any
option for recapitalization. In fact, with several options
under consideration, the conferees believe the Department of
Defense should conduct an analysis of alternatives to determine
the most cost-effective approach to this recapitalization and
modernization. The conferees believe, in weighing the various
options, consideration should be given to: (1) collaborative,
network-centric operations that allow the various platforms to
coordinate their various collection and analytical functions;
(2) the ability to control unmanned aerial vehicles and their
payloads; (3) a reach-back capability allowing analysts not on
the platform to operate systems; (4) software re-programmable
systems to allow for rapid threat updates; and (5) the ability
to share in system upgrades.
Arleigh Burke-class destroyer procurement
The conferees agree with the Navy assessment that the
destroyer industrial base is at risk unless three destroyers
are built each year or unless the destroyer shipbuilders attain
significant other work beyond their historic level of the past
10 years. Therefore, the conferees agree that the Secretary of
the Navy should include procurement of three Arleigh Burke-
class destroyers in the fiscal year 2003 budget request to
attain an economic rate of production and consider options for
maintaining and transitioning the industrial base, including
second tier suppliers, to future destroyer production.
Attack submarine force structure study
Section 123 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 required the Secretary
of Defense to provide a report on the Navy's fleet of attack
submarines. That provision required that the Secretary submit
this report with the fiscal year 2002 budget request.
Although the amended budget request was submitted to
Congress on June 27, 2001, the Secretary has not yet submitted
the required report. The conferees urge the Secretary of
Defense to submit the required report, which is intended to
provide the Congress with the information required to review
the plans for recapitalizing the attack submarine force
structure.

Legislative Provisions Adopted

Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 101-107)
The Senate bill contained provisions (secs. 101-107) that
would authorize the recommended fiscal year 2002 funding levels
for procurement for the Army, Navy, Marine Corps, Air Force,
Defense-Wide activities, Defense Inspector General, Chemical
Demilitarization Program, and Defense Health Program.
The House amendment contained similar provisions.
The conference agreement includes these provisions.
Chemical agents and munitions destruction, Defense (sec. 106)
The Senate bill contained a provision (sec. 106) that
would authorize the requested amount of $1.2 billion for the
Office of the Secretary of Defense for destruction of chemical
agents, weapons and materiel.
The House amendment contained a similar provision (sec.
106) that would authorize $1.1 billion for chemical
demilitarization.
The House recedes with an amendment that would authorize
the requested $1.2 billion for the Department of Defense for
Chemical Agents and Munitions Destruction, Defense.
The conferees are disappointed that the Department of
Defense requested funds for chemical demilitarization for
fiscal year 2002 in an Army account, contrary to the
requirements of law. Section 1521(f) of title 50, United States
Code, requires that funds for this program shall not be
included in the budget accounts for any military department.
The conferees expect the Department of Defense to comply with
the law in future budget requests for the chemical
demilitarization program.
The conferees note that the Department of Defense has
initiated a high-level review of the entire chemical
demilitarization program and all its component elements. The
conferees direct the Department to provide the congressional
defense committees with the results and recommendations of this
review, including an updated assessment required by section
141(a) of the National Defense Authorization Act for Fiscal
Year 2000, as directed in the House report accompanying H.R.
2586 (H. Rept. 107-194), by March 1, 2002.

Subtitle B--Army Programs

Repeal of limitations on bunker defeat munitions program (sec. 111)
The House amendment contained a provision (sec. 112) to
repeal section 115 of the National Defense Authorization Act
for Fiscal Year 1995, which limits the acquisition of bunker
defeat munitions.
The Senate bill contained no similar provision.
The Senate recedes.
Extension of pilot program on sales of manufactured articles and
services of certain Army industrial facilities without regard
to availability from domestic sources (sec. 112)
The Senate bill contained a provision (sec. 141) that
would extend the pilot program for sales of manufactured
articles and services from up to three Army industrial
facilities enacted by section 141 of the National Defense
Authorization Act for Fiscal Year 1998 through fiscal year
2002.
The House amendment contained no similar provision.
The House recedes with an amendment that would extend the
authority for the pilot program through fiscal year 2002 but
would limit the program to one facility. The conferees direct
that the facility that has demonstrated the most success with
the pilot program to date be selected as the facility to
continue the pilot program.
Limitations on acquisition of interim armored vehicles and deployment
of interim brigade combat teams (sec. 113)
The conferees agree to a provision that would amend
section 113 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001, which required the
Secretary of the Army to submit a report on the process for
developing the Objective Force in the transformation of the
Army. The provision also required the Secretary of the Army to
conduct a comparative cost and operational effectiveness
evaluation of the interim armored vehicles (IAV) selected for
the Interim Brigade Combat Team (IBCT) with the infantry troop-
carrying medium armored vehicles currently in the Army
inventory.
The provision further prohibited the obligation of funds
for a third IBCT until: the comparative evaluation is carried
out; the Secretary of Defense submits the results of the
evaluation to the congressional defense committees; and the
Secretary certifies that (1) he approves of the obligation of
funds for that purpose and (2) the force structure resulting
from the acquisition and subsequent operational capability of
Interim Brigade Combat Teams will not diminish the combat power
of the Army.
The Secretary of the Army has requested relief from the
requirement for the comparative evaluation directed in this
provision. The Secretary stated that the comparative evaluation
would replicate the comparison accomplished during source
selection, and duplicate more comprehensive testing already
required by law.
Last year, the conferees concluded that the costs
associated with the comparative evaluation were worth incurring
for a better understanding of whether the differences in
operational effectiveness, if any, justify the increased cost
of new IAV procurement compared to using current inventory
equipment.
While the conferees continue to believe that there is
merit to the comparative evaluation, the conferees recommend a
modification to section 113 that would grant the Secretary of
Defense the authority to waive those portions of section 113
pertaining to the comparative evaluation, subject to certain
certifications.
The conferees direct the Secretary of the Army to conduct
an operational evaluation of the initial IBCT, to include
deployment to the evaluation site and the execution of combat
missions across the full spectrum of potential threats and
operational scenarios. The plan for the operational evaluation
must be approved by the Director of Operational Test and
Evaluation, Department of Defense, prior to execution.
The Army is prohibited from acquiring interim armored
vehicles for other than the first three brigades, and from
deploying any IBCT, until 30 days after a report on the
operational evaluation is forwarded to the Congress and the
Secretary of Defense certifies to the Congress that the results
of the evaluation indicate that the IBCT design is
operationally effective and suitable.
The Secretary of Defense can waive the deployment
prohibition if he determines it to be in the national security
interests of the United States, and reports to Congress the
reasons for the waiver.
The conferees expect the Army to develop and resource an
experimentation program that will inform the design of the
Objective Force, including a formal linkage of the Interim
Brigade Combat Teams to that experimentation.

Subtitle C--Navy Programs

Virginia class submarine program (sec. 121)
The Senate bill contained a provision (sec. 121) that
would modify section 123(b)(1) of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 by authorizing
the Secretary of the Navy to enter into contracts for the
procurement of material in economic order quantities, when cost
savings are achievable, for up to seven Virginia-class
submarines. This authority would apply to boats to be procured
during the period from fiscal years 2003 through 2007.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Multiyear procurement authority for F/A-18E/F aircraft engines (sec.
122)
The Senate bill contained a provision (sec. 122) that
would authorize the Secretary of the Navy to enter a multiyear
contract for procurement of F/A-18E/F aircraft engines in
accordance with section 2306b of title 10, United States Code.
The House amendment contained no similar provision.
The House recedes with an amendment that would require
the Secretary to certify that each of the conditions listed in
subsection (a) of section 2306b of title 10, United States
Code, has been satisfied. The provision would also require that
this multiyear procurement contract could not be entered into
until 30 days after the aforementioned certification has been
transmitted.
The Navy procures engines for F/A-18E/F aircraft directly
from the engine contractor and provides the engines to the
prime airframe contractor as government-furnished equipment.
The Navy is currently procuring the F/A-18E/F airframe under a
multiyear contract that covers the fiscal years from 2000 to
2004. The conferees understand that this provision would
authorize a multiyear procurement contract that may not cover
exactly the same time period as that for the airframe itself.
The conferees believe that the Secretary of the Navy should, if
he chooses to enter into a multiyear contract for these
engines, consider synchronizing the time periods of the
contracts for these two items.
V-22 Osprey aircraft program (sec. 123)
The Senate bill contained a provision (sec. 123) that
would keep the production rate of V-22 aircraft at the minimum
sustaining rate, defined as the number for which funds are
authorized to be appropriated in this Act, until the Secretary
of Defense certifies to Congress that operational testing has
successfully demonstrated certain effectiveness and suitability
aspects not yet demonstrated.
The House amendment contained no similar provision.
The House recedes.
The conferees note that this provision is consistent with
the recommendations of the report of the Panel to Review the V-
22 Program, which was released in May 2001.
Report on status of V-22 Osprey aircraft before resumption of flight
testing (sec. 124)
The Senate bill contained two provisions relating to
reports that would be required before the V-22 could return to
flight status.
One provision (sec. 124) would require the Secretary of
Defense to notify Congress of the waiver, if any, of any item
capability or other requirement specified in the V-22 Joint
Operational Requirements Document, along with justification for
any such waiver. The provision would require that any such
notice be given at least 30 days before the V-22 resumes flight
operations.
The second provision (sec. 215) would require the Under
Secretary of Defense (Acquisition, Technology, and Logistics)
to submit a report, 30 days before V-22 resumption of flight,
that would include: (1) a description of any hydraulics and
flight control software deficiencies and corrective actions;
(2) actions to implement the recommendations of the Panel to
Review the V-22 Program; and (3) an assessment of the
recommendations of the National Aeronautics and Space
Administration in its report on tiltrotor aeromechanics.
The House amendment contained no similar provisions.
The House recedes with an amendment that would combine
the reporting requirements into one provision, and would
require the Secretary of Defense to submit the report no later
than 30 days prior to V-22 resumption of flight.

Subtitle D--Air Force Programs

Multiyear procurement authority for C-17 aircraft (sec. 131)
The Senate bill contained a provision (sec. 131) that
would authorize a multiyear procurement of up to 60 additional
C-17 aircraft in accordance with section 2306b of title 10,
United States Code.
The House amendment contained a similar provision (sec.
121) that would authorize a multiyear procurement of up to 60
additional C-17 aircraft after the Secretary of Defense
certifies that such a procurement is in the interest of the
Department of Defense.
The conferees agree to a provision that would authorize
the Secretary of the Air Force to enter into a multiyear
contract for procurement of up to 60 additional C-17 aircraft
in accordance with section 2306b of title 10, United States
Code, except that the contract could cover a period of up to
six program years.
The provision would require that the Secretary certify
that each of the conditions listed in subsection (a) of section
2306b of title 10, United States Code, has been satisfied. The
provision would also require that this multiyear procurement
contract could not be entered into until 30 days after the
aforementioned certification has been transmitted.

Legislative Provisions Not Adopted

Additional amount for Shipbuilding and Conversion, Navy
The House amendment contained a provision (sec. 108) that
would authorize an increase of $57.1 million for a ship
overhaul.
The Senate bill contained no similar provision.
The House recedes.
Destruction of existing stockpile of lethal chemical agents and
munitions
The House amendment contained a provision (sec. 141) that
would amend section 152 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106; 50 U.S.C. 1521
note) to add to the requirements that must be satisfied before
the Secretary of Defense may initiate destruction of the
chemical munition stockpile stored at a chemical stockpile
destruction site. The provision would require the Under
Secretary of Defense (Acquisition, Technology, and Logistics)
to convene independent oversight boards that would make a
recommendation to the Under Secretary on whether the
destruction of the chemical munitions stockpile should be
initiated at a particular chemical stockpile destruction site.
Finally, the provision would require that the Under Secretary,
after considering a negative recommendation of a board, may not
recommend commencing destruction of the chemical munitions
stockpile at the site until 90 days after the Under Secretary
notifies the Congress of his intent to recommend initiation of
chemical munitions destruction operations.
The Senate bill contained no similar provision.
The House recedes.
Extension of multiyear contract for Family of Medium Tactical Vehicles
The House amendment contained a provision (sec. 111) that
would give the Secretary of the Army discretionary authority to
extend the existing multiyear procurement contract for the
Family of Medium Tactical Vehicles for one additional year.
The Senate bill contained no similar provision.
The House recedes.
Procurement of additional M291 skin decontamination kits
The Senate bill contained a provision (sec. 142) that
would authorize an increase of $2.4 million in the Defense-Wide
procurement account for procurement of additional M291 skin
decontamination kits.
The House amendment contained no similar provision.
The Senate recedes.
The Senate bill would separately authorize an additional
increase of $1.0 million for procurement of M291 skin
decontamination kits.
The conferees agree to authorize an increase of $3.4
million for procurement of M291 skin decontamination kits, as
noted elsewhere in this report.

Title II--Research, Development, Test, and Evaluation

Research, Development, Test, and Evaluation overview
The budget request for fiscal year 2002 included an
authorization of $47,429.4 million for Research and Development
for the Department of Defense.
The Senate bill would authorize $46,602.5 million.
The House amendment would authorize $47,424.9 million.
The conferees recommended an authorization of $46,460.8
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Management reform initiatives
The conferees agree to reduce the research, development,
test and evaluation accounts by $140.0 million to reflect
savings from management reform initiatives, as discussed in
Title VIII.
Research, Development, Test and Evaluation, Army--Overview
The budget request for fiscal year 2002 included an
authorization of $6,693.9 million for Research, Development,
Test and Evaluation, Army in the Department of Defense.
The Senate bill would authorize $6,901.7 million.
The House amendment would authorize $6,749.0 million.
The conferees recommended an authorization of $6,675.3
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Army missile defense technology
To support critical missile defense technology
activities, the conferees agree that of the funding authorized
in the Army research and development account, certain amounts
may be used for advanced technology activities as specified
below:
(1) up to $1.9 million for the Short-range missile
defense With Optimal Radar Distribution (SWORD) program
in PE 62303A;
(2) up to $7.6 million for Patriot ground equipment
upgrades and life extension efforts in PE 23801A;
(3) up to $3.8 million for the Aerostat Design and
Manufacture (ADAM) program in PE 12419A; and
(4) up to $11.0 million for the Army Space and
Missile Defense Battle Lab in PE 63308A.
Comanche
The budget request contained $787.9 million in PE 64223A
for continued engineering and manufacturing development (EMD)
of the RAH-66 Comanche reconnaissance attack helicopter.
The Senate bill would authorize an increase of $28.3
million for the development of a communications suite that is
compatible with air and ground components in a joint
environment.
The House amendment would authorize an increase of $28.5
million for a similar purpose.
The conferees agree to authorize an increase of $28.3
million in PE 64223A for this requirement.
The conferees believe the Comanche is a necessary and
integral weapon system to the Army's transformation and have
been supportive of this program in past fiscal years. The Army
has stated that the Comanche is its top modernization program.
However, the conferees note that there has been a $3.0 billion
increase in research, development, test and evaluation (RDT&E)
costs since fiscal year 1991. Despite these substantial cost
increases, the program continues to be plagued by delays, which
the conferees now understand could result in a full two-year
delay of the currently scheduled initial operating capability
(IOC) of December 2006 to December 2008. The conferees are
disappointed to learn once again of the need to restructure and
delay this program for at least a sixth time since fiscal year
1988, and the need to add approximately $1.5 billion to the
program to complete EMD.
The conferees question the reliability of any new cost
estimates and EMD program milestones, especially since the EMD
contract was awarded only slightly over a year ago, in June
2000, and numerous changes in requirements have been made since
then.
The conferees believe that as the aircraft continues in
the EMD phase, an adequately funded and disciplined development
program is absolutely essential to fielding this aircraft as
part of the Army's Objective Force. Therefore, the conferees
expect the Secretary of the Army, in coordination with the
Under Secretary of Defense for Acquisition, Technology, and
Logistics, and its industry team, to present to Congress in the
fiscal year 2003 budget request an accurate estimate of funds
required to complete EMD and the new time line and plan for
bringing the Comanche to IOC.
Rapid acquisition program for transformation
The budget request included $23.6 million in PE 23761A
for the Rapid Acquisition Program for Transformation (RAPT).
The Senate bill would authorize $23.6 million for RAPT,
but would transfer the funding from the RAPT program element to
the program elements supporting the systems chosen by the Army
for entry into the program for fiscal year 2002.
The House amendment would authorize $23.6 million for
RAPT, but would transfer the funding from the RAPT program
element to PE 63001A, Warfighter Advanced Technology.
The conferees agree to authorize $23.6 million in PE
23761A for RAPT or counter-terrorism initiatives and direct the
Secretary of the Army to provide a detailed list of how these
funds are executed.
Tactical high energy laser
The budget request included no funds for the Tactical
High Energy Laser (THEL) program, a joint U.S.-Israeli
development program to demonstrate the feasibility of defeating
short-range rockets using directed energy.
The Senate bill would authorize $9.0 million of the funds
available in PE 63882C to evaluate the development of a Mobile
THEL (MTHEL) system.
The House amendment would authorize an increase of $10.0
million to PE 65605A for continuing work on THEL and exploring
the option of a mobile version of THEL.
The conferees agree to authorize, from within the funds
available in the Army research and development account, an
increase of $10.0 million to PE 65605A for evaluating
development of THEL as a mobile system.
Thermionics technology
The budget request included $19.5 million in PE 63308A
for Army missile defense systems integration, but did not
include funds for thermionics technology development.
The Senate bill would authorize, of the funds authorized
in PE 63882C for the Midcourse Ground Defense System, $8.0
million for thermionics technology development.
The House amendment would authorize an increase of $3.0
million in PE 63308A for thermionics technology development.
The conferees agree to authorize an increase of $1.0
million in PE 63308A for thermionics technology development. Of
the amounts authorized for Army research and development, an
additional $7.0 million may be used for thermionics technology
development.
Research, Development, Test and Evaluation, Navy--Overview
The budget request for fiscal year 2002 included an
authorization of $11,123.4 million for Research, Development,
Test and Evaluation, Navy in the Department of Defense.
The Senate bill would authorize $11,134.8 million.
The House amendment would authorize $10,863.3 million.
The conferees recommended an authorization of $10,784.3
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Follow-on support jamming aircraft
The budget request included $112.5 million in PE 64270N
for electronic warfare development, but included no funds for
pre-engineering and manufacturing development (EMD) risk
reduction activities for a follow-on support jamming aircraft
program to replace the EA-6B.
The House amendment would authorize an increase of $10.0
million for pre-EMD risk reduction activities for a follow-on
support jamming aircraft program.
The Senate bill included no similar authorization.
The conferees agree to authorize no additional funds for
a follow-on support jamming aircraft program.
The conferees recognize that the Department of Defense is
scheduled to complete the Analysis of Alternatives (AoA) in
December 2001 and believe that the Department will identify a
need to replace the capability currently provided by the EA-6B
fleet of electronic warfare aircraft. The conferees believe
that the Department should move expeditiously to translate the
results of that AoA into a plan that will avoid having the
Nation presented with any gap in this important mission area.
Future destroyer program
The budget request included $288.4 million in PE 63513N
and $355.1 million in PE 64300N for the DD-21 program.
The Senate bill would authorize the budget request.
The House amendment would authorize a decrease of $25.0
million in PE 63513N.
Subsequent to passage of both the Senate bill and the
House amendment, the Navy announced intentions to restructure
the DD-21 program to a family of surface combatants including a
destroyer version, DD(X). However, the specifics of the
proposed programs for development of the family of surface
combatants were not available for the conferees to review.
Therefore, the conferees agree to authorize a decrease of
$50.0 million in PE 63513N resulting from the delay in the
down-select to a future destroyer detail design. The conferees
will review the Navy's decision to restructure DD-21 when the
Navy makes available details of the cancellation of the current
request for proposals and the proposed replacement program.
Littoral support craft--experimental
The budget request included $85.3 million in PE 63123N
for force protection advanced technology, including $20.0
million for development and demonstration of experimental craft
for littoral support operations. The Office of Naval Research
has proposed to conduct a phased program to develop and
demonstrate an experimental littoral support craft demonstrator
(LSC-X) that would build upon development and evaluation of
operational concepts at the component and subsystem level and
provide the basis for operational experiments on the
contribution that such craft could make to naval operations in
the littoral.
The House amendment would authorize a total of $39.0
million in PE 63123N for development and demonstration of an
LSC-X, including an increase of $19.0 million for demonstration
and development of an experimental craft for littoral support
operations.
The Senate bill included no similar authorization.
However, the Senate report accompanying S. 1438 (S. Rept. 107-
62) identified at least six efforts that the Navy has underway
to test key technologies for future ship programs. The Senate
report also would encourage the Navy to focus ship design
efforts on programs that will collect the type of information
that will be needed to make decisions on future combatant
ships, the future amphibious ship (LH(X)), the future joint
command and control ship (JCC(X)), and the maritime
prepositioning force ship of the future (MPF(F)), rather than
duplicating efforts already underway.
The conferees agree to authorize a total of $31.0 million
in PE 63123N, an increase of $11.0 million, to continue the ONR
program for development and demonstration of the LSC-X.
The conferees direct that the Secretary of the Navy
identify the set of experimental objectives that the LSC-X
program is intended to explore, and the objective measures of
effectiveness that will be used to determine whether those
objectives have been achieved. The conferees also direct the
Secretary to define the program plan, the schedule, and the
funding requirements for development of LSC-X. The Secretary
should provide all of this information to the congressional
defense committees by March 31, 2002.
Research, Development, Test and Evaluation, Air Force--Overview
The budget request for fiscal year 2002 included an
authorization of $14,344.0 million for Research, Development,
Test and Evaluation, Air Force in the Department of Defense.
The Senate bill would authorize $14,459.5 million.
The House amendment would authorize $14,485.7 million.
The conferees recommended an authorization of $14,407.2
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Joint Strike Fighter
The budget request included no funding for PE 63800N or
PE 63800F for continuing demonstration and validation (DEMVAL)
of the joint strike fighter (JSF). The budget request included
$767.3 million for PE 64800N and $769.5 million for PE 64800F
for initiating the engineering and manufacturing development
(EMD) of the JSF.
The Senate bill would authorize an increase of $30.0
million for PE 63800N and an increase of $30.0 million for PE
63800F to continue JSF DEMVAL. The Senate bill would also
authorize a decrease of $153.6 million for PE 64800N and a
decrease of $153.6 million for PE 64800F. The Senate bill based
these actions on a possible delay in the award of the EMD
contract.
The House amendment would authorize the budget request
for PE 64800N, and an increase of $10.0 million for PE 64800F
for the JSF alternate engine program.
The conferees agree to authorize the budget request.
The conferees remain concerned about the technical risks
associated with the JSF aircraft engine and expect the
Department to develop and integrate the JSF alternate engine
within the EMD program. The conferees believe that the
Department should execute the alternate engine program with a
goal of having that engine integrated into the JSF prior to
full rate production.
The conferees are aware of the potential long-term impact
to the military aircraft industrial base as a result of the
recently completed source selection. Source selection talking
points, released by the Department of Defense (DOD) at the
announcement of the selection, stated: ``The JSF downselect may
lead companies to reassess their strategic position and teaming
arrangements. The expertise resident in the teams not selected
today can still make a contribution to the JSF effort through
revised industrial teaming arrangements. DoD will encourage
teaming arrangements that make the most efficient use of the
expertise in the industrial base to deliver the `best value'
product.''
The conferees direct the Under Secretary of Defense for
Acquisition, Technology, and Logistics to submit a report, with
the submission of the fiscal year 2003 budget request, which
details: (1) projections for the military aircraft industrial
base, to include foreign military sales, between now and fiscal
year 2015; and (2) actions taken by the DOD to encourage
teaming arrangements in the JSF program that make the most
efficient use of the expertise in the industrial base.
Low cost launch technologies
The budget request included $54.5 million in PE 63401F
for advanced spacecraft technology, but included no funds for
low cost launch technology.
The Senate bill would authorize, of the funds authorized
in PE 63882C for the Midcourse Ground Defense System, $15.0
million for the Excalibur and Scorpius low cost launch
concepts.
The House amendment would authorize $15.0 million in PE
63401F for low cost launch technologies, including Scorpius.
The conferees note that the Air Force has terminated the
Excalibur project. The conferees agree to authorize an increase
of $2.0 million in PE 63401F for low cost launch technologies,
including Scorpius. Of the funds authorized in PE 63401F, an
additional $13.0 million may be used for low cost launch
technologies, including Scorpius.
Special aerospace materials and materials manufacturing processes
The budget request included $77.2 million for PE 62102F
for applied research in materials, $32.7 million for PE 63112F
for advanced development of advanced materials for weapons
systems, and $53.8 million in PE 78011F for the Air Force's
manufacturing technology program.
The House amendment would authorize increases of $4.5
million in PE 62102F, $4.5 million in PE63112F, and $3.5
million in PE 78011F to continue the program for development
and demonstration of special aerospace materials and materials
manufacturing processes.
The Senate bill would authorize an increase of $16.5 in
PE 62102F, including $5.0 million for improvements in the
manufacturing of speciality aerospace materials.
The conferees agree to an increase of $3.5 million in PE
62102F to continue the program for applied research and
development in special aerospace materials and materials
manufacturing processes.
The conferees note the continuing need of the military
services for advances in speciality aerospace metals and metal
alloys for aircraft and space vehicle structures, propulsion,
components, and weapon systems. The conferees direct the
Secretary of the Air Force, in coordination with the Secretary
of the Navy, to assess the requirements for advanced aerospace
metals and alloys and report to the congressional defense
committees on the plan, including budget, schedule, and
technology demonstrations, for meeting these requirements with
the submission of the fiscal year 2004 budget request.
Research, Development, Test and Evaluation, Defense-Wide--Overview
The budget request for fiscal year 2002 included an
authorization of $15,050.8 million for Research, Development,
Test and Evaluation, Defense-Wide in the Department of Defense.
The Senate bill would authorize $13,878.7 million.
The House amendment would authorize $15,109.6 million.
The conferees recommended an authorization of $14,372.6
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Arrow missile defense system
The budget request included $65.7 million in PE 63881C
for the Arrow ballistic missile defense system, a joint
development program between the United States and Israel.
The Senate bill would authorize an increase of $76.0
million in PE 63881C for the Arrow System Improvement Program
and for continued joint interoperability efforts.
The House amendment would authorize an increase of $30.0
million in PE 63881C for acceleration of the Arrow System
Improvement Program.
The conferees agree to authorize, from within funds
available to the Ballistic Missile Defense Organization, an
increase of $53.0 million in PE 63881C to accelerate the Arrow
System Improvement Program and to continue joint
interoperability efforts for U.S. and Israeli missile defense
systems.
Ballistic missile defense advanced technology
To support critical ballistic missile defense technology
activities, the conferees agree that, of the funding authorized
for the Ballistic Missile Defense Organization, certain amounts
may be used for advanced technology activities as specified
below:
(1) up to $9.0 million for the Magdalena Ridge
Observatory in PE 63175C;
(2) up to $5.0 million for Phase III of the
Software Defined Radio program in PE 63175C;
(3) up to $8.0 million for the Army Space and
Missile Defense Command's Advanced Research Center
(ARC) in PE 63880C;
(4) up to $8.0 million for the Airborne Infrared
Surveillance System (AIRS) in PE 63175C;
(5) up to $2.5 million for Bottom Anti-Reflective
Coatings (BARC) for circuit boards in PE 63175C;
(6) up to $7.5 million for ultra-flat planarization
technology for integrated circuits in PE 63175C; and
(7) up to $10.0 million for the Atmospheric
Interceptor Technology (AIT) program in PE 63175C.
Common database asset for biological security
The budget request included $125.5 million in PE 62384BP
for applied research in chemical and biological defense.
The Senate bill would authorize an increase of $1.5
million to develop a database of biological pathogen
information and bioinformatics tools to support development of
medical biological countermeasures.
The House amendment included no similar authorization.
The conferees agree to authorize an increase of $1.5
million for the development of a common database asset to
support development of medical biological countermeasures. The
database would integrate genomic and other biological data
about high-priority pathogens, underlying scientific research
and bioinformatics tools, and would serve those agencies
addressing threats to biological security.

Items of Special Interest

Navy research and development budget exhibits
The Senate report accompanying S. 1438 (S. Rept. 107-62)
would require the Navy to comply with the research and
development budget justification guidelines included in the
Department of Defense (DOD) Financial Management Regulation
(DOD 7000.14-R). Subsequent to the passage of the Senate bill,
the Navy provided additional budget justification information
to the congressional defense committees.
The conferees share the concern expressed in the Senate
report regarding the reorganization of the Navy's science and
technology program elements in the fiscal year 2002 budget
justification material. The failure of the Navy to display
explicitly the transition between the fiscal year 2001 program
element structure and the new fiscal year 2002 structure
detracted from the ability of the defense authorizing
committees to exercise their oversight responsibilities.
The conferees also share the Senate's concern about the
priority given to Fleet and Force operational and support
issues in the Navy's science and technology program and direct
the Secretary of the Navy to report to the congressional
defense committees by March 31, 2002, on the measures being
taken to address these issues.
The conferees direct the Secretary of the Navy and the
Under Secretary of Defense (Comptroller) to ensure that the
Navy's budget justification information accompanying the fiscal
year 2003 budget request adequately describes the Navy's
science and technology program and complies with the
requirements of DOD 7000.14-R. The Under Secretary shall report
to the congressional defense committees with submission of the
budget request any deficiencies in the budget justification
material and the estimated date by which those deficiencies
will be resolved.

Legislative Provisions Adopted

Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 201-202)
The Senate bill contained provisions (secs. 201-202) that
would authorize the recommended fiscal year 2002 funding levels
for all research, development, test, and evaluation accounts.
The House amendment contained similar provisions.
The conference agreement includes these provisions.
Supplemental authorization of appropriations for fiscal year 2001 for
Research, Development, Test, and Evaluation Defense-Wide (sec.
203)
The Senate bill contained a provision (sec. 233) that
would authorize an increase of $1.0 million in fiscal year 2001
for intelligent spatial technologies for smart maps.
The House amendment contained no similar provision.
The House recedes.

Subtitle B--Program Requirements, Restrictions, and Limitations

Naval surface fire support assessment (sec. 211)
The House amendment contained a provision (sec. 212) that
would direct the Secretary of Defense to establish a
competitive program for the development of an advanced land
attack missile (ALAM) for the DD-21, and would designate $20.0
million in PE 63795N for that purpose. The provision would also
require the Secretary to submit a report on the program plan,
schedule and funding for the ALAM program.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to carry out an assessment of the
requirements for naval surface fire support of ground forces
operating in the littoral environment, including the role of an
advanced fire support missile system for Navy combatant
vessels. The amended provision would require that the Secretary
submit a report on the results of that assessment by March 31,
2002.
Collaborative program for development of advanced radar systems (sec.
212)
The House amendment contained a provision (sec. 213) that
would establish a cooperative research program to develop
electronic materials for advanced radar applications.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would eliminate
reference to specific dollar amounts for the programs. These
dollar issues are treated in the funding tables in this report.
The conferees agree to a provision that would establish a
cooperative research program to develop electronic materials
for advanced radar applications. The conferees recognize the
emerging importance of advanced electronic materials on future
military systems, including advanced radar systems and other
applications across services.
The provision would direct the Director of Defense
Research and Engineering, the Secretary of the Navy, the
Director of Defense Advanced Research Projects Agency (DARPA),
and other appropriate services and agencies to enter into a
collaborative agreement in order to coordinate ongoing efforts
within this critical emerging technology area. The conferees
believe that the agreement should focus on: (1) activities
needed for technology development to extend the range and
sensitivity of naval radars, including high frequency and high
power wide band gap semiconductor materials and devices; and
(2) acquisition systems to accelerate the deployment of the new
technology.
The conferees expect the agreement to be constructed in a
manner such that the Services and Agencies will increase
financial investments to support necessary research, technology
transition, and technology insertion activities. The conferees
are concerned that, despite a recognition within the Navy of
the importance of this emerging technology, the Office of Naval
Research budget submission includes only very limited funding
for wide band gap electronics research.
In addition, the conferees expect that any agreement will
enable DARPA to maintain the flexibility to invest in a variety
of research programs and directions associated with wide band
gap technologies that will apply to numerous cross-service
applications. This will preserve DARPA's role of developing
revolutionary technologies and capabilities, while remaining
relatively unconstrained from near-term requirements.
Repeal of limitations on total cost of engineering and manufacturing
development for F-22 aircraft program (sec. 213)
The Senate bill contained a provision (sec. 211) that
would repeal the cost limitation on the engineering and
manufacturing development (EMD) phase for the F-22 aircraft
program.
The House amendment contained a provision (sec. 214) that
would have raised the cost limitation on the F-22 EMD program
by $250.0 million.
The House recedes with an amendment that would clarify
that the repeal of the cost limitation would apply only to the
EMD phase of the program.
Joint biological defense program (sec. 214)
The Senate bill contained a provision (sec. 214) that
would extend through fiscal year 2002 section 217 (a) of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 to define permissible obligations and identify
reports to be provided to Congress concerning procurement of
anthrax vaccine.
The House amendment contained no similar provision.
The House recedes.
Cooperative Department of Defense-Department of Veterans Affairs
Medical Research Program (sec. 215)
The House amendment contained a provision (sec. 211) that
would authorize funding for the cooperative Department of
Defense/Department of Veterans Affairs medical research
program.
The Senate bill contained no similar provision.
The Senate recedes with an amendment.
The conferees agree to authorize $2.5 million in PE
63738D8Z for the cooperative Department of Defense/Department
of Veterans Affairs medical research program for research on
the efficacy of antiarrythmic drugs with implantable
cardioverter defibrillators. The conferees direct the Secretary
of Defense to transfer such amount no later than 30 days after
the date of the enactment of this Act.
C-5 aircraft reliability enhancement and reengining program (sec. 216)
The Senate bill contained a provision (sec. 212) that
would require the Secretary of the Air Force to ensure that
engineering and manufacturing development (EMD) under the C-5
aircraft reliability enhancement and reengining program (RERP)
includes kit development for an equal number of C-5A and C-5B
aircraft. The Air Force program envisioned a total of four
aircraft in the RERP EMD program.
The House amendment contained no similar provision.
The House recedes with an amendment that would require
the Secretary to include at least one aircraft from among the
74 C-5A aircraft in the C-5 RERP EMD program.

Subtitle C--Ballistic Missile Defense

Transfer of responsibility for procurement for missile defense programs
from Ballistic Missile Defense Organization to military
departments (sec. 231)
The House amendment contained a provision (sec. 231) that
would amend section 224 of title 10, United States Code, to
change the term ``procurement'' to the term ``research,
development, test and evaluation'' with respect to the display
of budget amounts in budget requests for the Ballistic Missile
Defense Organization (BMDO). The provision would also require
the Secretary of Defense to establish criteria for the transfer
of ballistic missile defense programs from the BMDO to the
military departments and to submit these criteria to the
congressional defense committees. Prior to the transfer of such
a program, the Secretary would be required to notify Congress
of his intent to make such a transfer and to certify that the
program had met the criteria for transfer. The provision would
permit such a transfer 60 days after Congress is notified.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to ensure that, for any transferred
program, all appropriate conforming changes are made to
proposed or projected funding allocations in the future years
defense program. This will ensure that the funding is
transferred with a program from the BMDO to a military
department. The amendment would also require that, before a
program is transferred, the roles and responsibilities are
clearly defined for follow-on research, development, test and
evaluation related to system improvement for that program.
The budget request proposed transferring the Patriot PAC-
3 and the Medium Extended Air Defense System (MEADS) to the
Army, and the Navy Area Defense system to the Navy. This
provision would delay any such transfer until the requirements
of the provision have been met. Consequently, the conferees
agree to authorize funding for these ballistic missile defense
programs within the BMDO accounts, and not with the military
departments.
Program elements for Ballistic Missile Defense Organization (sec. 232)
The House amendment contained a provision (sec. 232) that
would repeal section 223 of title 10, United States Code, which
established program elements for ballistic missile defense
(BMD) programs.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would revise
the program elements for ballistic missile defense and require
certain information and reviews concerning BMD activities.
The amendment would establish six new functional program
elements and require that additional program elements be
established for BMD programs entering into engineering and
manufacturing development (EMD).
The amendment would require the Secretary of Defense to
establish cost, schedule, testing and performance goals for BMD
programs for the period covered by the future years defense
program and to submit a statement of those goals to Congress
each year.
The amendment would require the Secretary of Defense to
submit to Congress each year an annual program plan for BMD
programs that enter EMD or the equivalent phase, including a
funding profile that displays estimated total funding and
expenditures for significant procurement, construction and
research and development, as well as a program schedule for
significant procurement, construction, research and
development, flight tests, and other significant test
activities. Information included in annual budget justification
documents need not be included in the plan.
The amendment would require that specified Department of
Defense officials and elements review and comment on the
development of goals and the annual program plan required in
the provision.
The amendment would require the Director of the Ballistic
Missile Defense Organization (BMDO) to develop a plan to ensure
that each critical technology for a BMD program is demonstrated
in an appropriate environment before entering operational
service. The Director of Operational Test and Evaluation would
review and comment on the plan.
The amendment would require, at the end of fiscal years
2002 and 2003, the Comptroller General of the United States to
assess the extent to which the BMDO achieved the goals
established by the Secretary of Defense for BMD programs, as
required by the provision, and to report to Congress on the
assessment.
The amendment would also require the Director of
Operational Test and Evaluation to assess each year the
adequacy and sufficiency of the BMDO test program for the
preceding year, and to report to Congress on the assessment.
Ballistic missile defense budget justification
The President's budget proposed moving most ballistic
missile defense programs into Research, Development, Test and
Evaluation, Defense-Wide, and grouping them primarily into five
large program elements.
The conferees are concerned that this year's budget
justification documentation does not include the level of
detail provided in past years for many of the projects within
the new program elements. While supportive of the
administration's intent to experiment with and test new
technologies prior to committing to system development and
acquisition, the conferees expect to receive appropriate levels
of detailed funding, schedule, and test event information as
required by annual budget justification reporting guidelines.
In addition to information provided for those programs
that have entered engineering and manufacturing development, or
an equivalent phase as described in the legislative provision,
the Secretary of Defense shall ensure that each year's budget
justification documents include the following information for
programs and projects in earlier stages of research and
development:
(1) funding appropriated in the previous year;
(2) the expected funding requirement for the next
six years, by year; and
(3) detailed schedule including hardware and
software deliveries, to the extent known, and planned
decision points and test events, at least through
completion of the planned testing and evaluation of the
prototype or experiment.
This information shall be provided as part of the annual
program plan report required by the provision, for programs and
projects as identified above and any program or project
identified as a matter of special interest, provided the
information is not already included in budget justification
materials accompanying the annual budget request.
Ballistic missile defense programs are among the most
technologically challenging and complex in the Department of
Defense. The exploration of leading edge technologies
associated with missile defense programs often involves
significant costs. Department of Defense directives and
instructions (e.g., Department of Defense Instruction 5000.2)
require the compilation of acquisition cost, life-cycle cost,
and total ownership costs for defense projects and programs
where available and approved. The conferees direct the
Department of Defense to fully comply with the requirements of
these DOD directives and instructions, including Department of
Defense Instruction 5000.2.
Support of ballistic missile defense activities of the Department of
Defense by the National Defense Laboratories of the Department
of Energy (sec. 233)
The House amendment contained a provision (sec. 233) that
would, at the discretion of the Director of the Ballistic
Missile Defense Organization (BMDO), make available from funds
authorized to be appropriated for the BMDO up to $25.0 million
for research development and demonstration activities at the
national laboratories of the Department of Energy National
Nuclear Security Administration (NNSA) in support of the
missions of the BMDO. The funds would be available subject to
the provision of matching funds by the NNSA. Activities funded
using this authority would be conducted under terms of the
September 14, 2001 Memorandum of Understanding (MOU) between
the Director of the BMDO and the Administrator of the National
Nuclear Security Administration for use of the national
laboratories by the BMDO.
The Senate bill contained no similar provision.
The Senate recedes.
The provision would authorize the Director of the BMDO to
use funds available to BMDO, on a discretionary basis, to
utilize the national laboratories of the NNSA under the terms
and conditions of the MOU. The terms of this MOU require that
jointly-funded work done pursuant to the MOU be mutually
beneficial to the missions of the two Departments.
The conferees note that the NNSA laboratories do a
substantial amount of work for the Department of Defense in
their role as federally funded research and development centers
on a Work for Others basis. The conferees do not intend for
this provision in any way to affect the ability of the BMDO to
contract with the NNSA laboratories to conduct work under the
Work for Others program. On the contrary, the conferees urge
the Director to look closely at the capabilities of the NNSA
laboratories and to utilize these capabilities fully.
Missile defense testing initiative (sec. 234)
The House amendment contained a provision (sec. 234) that
would establish certain guidelines and requirements for the
ballistic missile defense testing program of the Department of
Defense.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Construction of test bed facilities for missile defense system (sec.
235)
The House amendment contained a provision (sec. 235) that
would authorize the Secretary of Defense to use up to $500.0
million of funds appropriated for research, development, test
and evaluation for fiscal years after fiscal year 2001 that are
available for the Ballistic Missile Defense Organization to
carry out construction projects, including construction of
facilities ``of general utility,'' to establish and operate the
missile defense system test bed. The provision would also
authorize the Secretary of Defense to use such funds to provide
assistance to communities to meet increased needs for services
or facilities resulting from construction or operation of the
test bed, subject to certain conditions.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would make
clear that funds may be used for all construction projects
necessary to establish and operate the test bed, but removes
the reference to facilities ``of general utility.'' The
conferees understand that this authorization would permit the
construction of such facilities as a power generation plant, a
heating plant and roads. The conferees believe that the term
``of general utility'' could have been construed to mean
facilities not necessary for establishing or operating the test
bed, which would be inconsistent with congressional intent.
The amendment would also limit the use of funds for
community assistance to funds appropriated for fiscal year
2002. If the Secretary of Defense determines that additional
authority is needed to use funds for community assistance, the
conferees direct the Secretary to provide full and specific
justification for such authority.

Subtitle D--Air Force Science and Technology for the 21st Century

Air Force science and technology for the 21st Century Act (sec. 251-
252)
The House amendment contained two provisions (secs. 251
and 252) that establish a sense of Congress regarding the Air
Force science and technology development planning process.
The Senate bill contained no similar provisions.
The Senate recedes.
Study and report on effectiveness of Air Force science and technology
program changes (sec. 253)
The House amendment contained a provision (sec. 253) that
would require the Air Force and the National Research Council
to study how changes to the Air Force science and technology
program implemented over the past two years affect the future
capabilities of the Air Force.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
The conferees direct the Air Force to ensure that the
National Research Council is provided sufficient resources to
adequately conduct the study called for by the provision.

Subtitle E--Other Matters

Establishment of unmanned aerial vehicle joint operational test bed
system (sec. 261)
The House amendment contained a provision (sec. 241) that
would require the Commander in Chief, U.S. Joint Forces Command
to establish a joint operational test bed (JOTB) system to
evaluate and ensure joint interoperability of unmanned aerial
vehicle (UAV) systems. The provision would also direct the
Secretary of the Navy to transfer certain Predator UAVs and
related equipment to the Joint Forces Command for use in the
JOTB system.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would delete
the requirement for the transfer, but ensure that the
Commander-in-Chief, U.S. Joint Forces Command controls the
priority for use of these predators and UAVs.
Demonstration project to increase small business and university
participation in Office of Naval Research efforts to extend
benefits of science and technology research to fleet (sec. 262)
The House amendment contained a provision (sec. 242) that
would require the Chief of Naval Research to carry out a
demonstration project to increase access to Navy facilities of
small businesses and universities that are engaged in science
and technology research beneficial to the fleet.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would ensure
that the Secretary of the Navy has discretion over which Navy
facilities to make available for the demonstration project and
is able to charge an appropriate fee for the use of these
facilities.
The conferees strongly encourage the Chief of Naval
Research to reach out to small, high-technology companies and
encourage them to participate in this demonstration program. As
a part of this outreach effort, the conferees encourage the
Chief of Naval Research to consider the use of third-party
partners, where appropriate, to help create and maintain
contacts and relationships with the high-technology
communities.
Communication of safety concerns from operational test and evaluation
officials to program managers (sec. 263)
The Senate bill contained a provision (sec. 232) that
would amend section 139 of title 10, United States Code. The
provision would add a subsection requiring the Director of
Operational Test and Evaluation to ensure that any safety
concerns found during the operational test and evaluation of a
weapon system under a major defense acquisition program are
communicated in a timely manner to the program manager
responsible for the acquisition of that weapon system.
The House amendment contained no similar provision.
The House recedes.

Legislative Provisions Not Adopted

Big Crow
The Senate bill contained a provision (sec. 216) that
would authorize funding for the Big Crow program.
The House amendment contained no similar provision.
The Senate recedes on the provision.
The conferees agree to authorize an increase of $2.0
million in PE 65118D8Z for the Big Crow program for test and
evaluation activities to support electronic warfare, space
operations, and other missions.
C-5 aircraft modernization
The House amendment contained a provision (sec. 215) that
would restore a reduction of $30.0 million in the amount
requested in Research, Development, Test, and Evaluation, Air
Force, for re-engining and avionics modernization programs for
the C-5 aircraft.
The Senate bill contained no similar provision.
The House recedes.
The conferees agree to authorize the budget request.
Enhanced scramjet mixing
The Senate bill contained a provision (sec. 203) that
would authorize funding for enhanced scramjet mixing.
The House amendment contained no similar provision.
The Senate recedes on the provision.
The conferees agree to authorize an increase of $2.5
million in PE 62303A for research in enhanced scramjet mixing.
Management responsibility for Navy mine countermeasures programs
The House amendment contained a provision (sec. 243) that
would extend the time period during which the Secretary of
Defense and the Chairman of the Joint Chiefs would have to
provide an annual certification about the adequacy of the
Navy's mine countermeasures programs. The provision would
change the ending date of that requirement from fiscal year
2003 to fiscal year 2008.
The Senate bill contained no similar provision.
The House recedes.

Review of alternatives to the V-22 Osprey aircraft

The Senate bill contained a provision (sec. 213) that
would require the Under Secretary of Defense (Acquisition,
Technology, and Logistics) to conduct a review of Marine Corps
and Special Operations Command requirements that are expected
to be met by the V-22 Osprey aircraft in order to identify
potential alternatives to the V-22 in the event that the V-22
program were to be terminated. The provision would also set
aside $5.0 million that would be available to conduct this
review.
The House amendment contained no similar provision.
The Senate recedes.

Special operations forces command, control, communications, computers,
and intelligence systems threat warning and situational
awareness program

The Senate bill contained a provision (sec. 204) that
would authorize an increase of $2.8 in PE 116405BB for the
special operations forces command, control, communications,
computers, and intelligence (SOF C4I) systems threat warning
and situational awareness (PRIVATEER) program.
The House amendment contained no similar provision.
The Senate recedes on the provision.
The conferees agree to authorize an increase of $1.0
million in PE 116444BB for the special operations forces
command, control, communications, computers, and intelligence
(SOF C4I) systems threat warning and situational awareness
(PRIVATEER) program, as noted elsewhere in this conference
report.

Technology ``Challenge'' program

The House amendment contained a provision (sec. 244) that
would establish a technology ``Challenge'' program for the
acceleration of innovative technology in defense acquisition
programs.
The Senate bill contained no similar provision.
The House recedes.

Technology transition initiative

The Senate bill contained a provision (sec. 231) that
would establish a technology transition initiative within the
Department of Defense.
The House amendment contained no similar provision.
The Senate recedes.
The conferees direct the Department of Defense to
continue and expand efforts to accelerate the rapid transition
of technologies into operational environments.

Title III--Operation and Maintenance

Overview

The budget request for fiscal year 2002 requested an
authorization of $125,350.0 million for operation and
maintenance programs and $2,458.4 million for working capital
fund accounts for the Department of Defense for fiscal year
2002.
The Senate bill would authorize $125,386.3 million for
operation and maintenance accounts and $2,408.1 million for
working capital fund accounts.
The House amendment would authorize $124,025.0 million
for operation and maintenance accounts and $2,359.7 million for
working capital fund accounts.
The conferees recommend an authorization of $123,259.9
million for the operation and maintenance accounts and $1,656.4
million for the working capital fund accounts of the Department
of Defense for fiscal year 2002. The conferees agree to a
reduction of $295.6 million in the Defense Working Capital Fund
to reflect lower fuel prices; and a reduction of $125.0 million
to reflect adjustments in utility prices, to be allocated
proportionately among the Army, Navy, Marine Corps, Air Force
and Defense-Wide accounts. Unless noted explicitly in the
statement of managers, all funding changes are made without
prejudice.
The following table lists the amounts authorized to be
appropriated for each program in the operation and maintenance
accounts of the Department of Defense.

Management reform initiatives
The conferees agree to reduce operations and maintenance
accounts by $1.07 billion to reflect savings from management
reform initiatives, as discussed in Title VIII.
Combating terrorism initiative
The budget request included $5.6 billion to continue
improving the ability of U.S. forces to deter and defend
against the growing terrorist threat.
The House amendment would authorize the requested amount.
The Senate bill would authorize the $5.6 billion request,
but included an additional $217.2 million to further improve
U.S. capabilities to combat terrorism. Of this increase, $108.0
million was added to operation and maintenance accounts. This
included: $77.7 million to address force protection
vulnerabilities on Army installations; $14.3 million for
enhanced counterterrorism training for U.S. Special Operations
Forces; $10.0 million for the combating terrorism readiness
initiatives fund for combatant commands; and $6.0 million to
purchase hand-held explosive detectors for seagoing Navy
vessels.
The conferees note that many of the vulnerabilities to
terrorist attacks have become high priorities for the
Department of Defense. This is reflected in the fact that a
significant portion of the additional funds included in the
Senate bill have already been funded in the fiscal year 2001
emergency supplemental appropriations act. Specifically, the
conferees understand that, as of the end of September 2001, the
Army had received $257.0 million in supplemental funding for
force protection improvements at its installations, and the
Special Operations Command had received $151.0 million for
combating terrorism, including immediate counterterrorism
training needs. The conferees agree, therefore, to authorize an
additional $10.0 million for the combatant commands' Combating
Terrorism Readiness Initiatives Fund, and $3.0 million to
purchase hand-held explosive detectors for the Navy.
Commercial imagery to support military requirements
The budget request included $30.0 million for purchasing
commercial imagery products in support of national needs.
The Senate bill would authorize an increase of $10.0
million to establish prototype contracts that the National
Imagery and Mapping Agency (NIMA) would use to establish
stronger ties with the private sector to satisfy commercial
satellite imagery needs. The Senate report (S. Rept. 107-62)
indicated that NIMA officials have suggested that the NIMA
might enter into prototype contracts with commercial remote
sensing entities to provide commercial satellite imagery for
the NIMA.
The conferees understand that, under such an approach,
the NIMA would contract with one or more U.S. commercial
satellite imagery providers to provide a portion of this
imagery directly to a network of geospatial production
companies, each of which supports NIMA customers with interests
in a particular region.
The House amendment would approve the budget request.
The conferees believe that the United States should
prioritize the use of commercial remote sensing as envisioned
in Presidential Decision Directive-23. Moreover, the conferees
believe that allocating certain satellite imagery requirements
to the U.S. commercial remote sensing industry will allow the
government to focus its own assets on more demanding
intelligence requirements. The conferees continue to support
using commercial satellite imagery and geospatial products and
services to satisfy the non-time-critical low and medium
resolution requirements of the Secretary of Defense, including
the regional commanders in chief, and the intelligence
community.
The conferees also understand that the administration is
developing a commercial imagery strategy to support these
requirements and endorses the development and implementation of
such a strategy. The conferees believe, however, that the U.S.
Government must become a reliable, long-term customer of
commercial satellite imagery if the strategy is to be
successful. The conferees recognize that there are budgetary
and contracting issues, but do not believe these are beyond
solution.
Therefore, the conferees direct the Secretary of Defense
and the Director of Central Intelligence to plan and carry out
a program to purchase a significant portion of their non-time-
critical low and medium resolution satellite imagery
requirements from the U.S. commercial remote sensing industry
by 2005.
The conferees note that substantial resources relating to
commercial imagery activities have been included in the
Emergency Terrorism Response Supplemental Appropriations Act,
2001. Therefore, the conferees recommend no additional funding
above the President's budget request for fiscal year 2002. The
conferees expect that the NIMA and the administration will make
appropriate use of these funds to implement this commercial
imagery strategy.

Legislative Provisions Adopted

Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 301-302)
The Senate bill contained provisions (secs. 301-302) that
would authorize the recommended fiscal year 2002 funding levels
for all operation and maintenance and working capital fund
accounts.
The House amendment contained similar provisions (secs.
301-302).
The conference agreement includes these provisions.
Armed Forces Retirement Home (sec. 303)
The Senate bill contained a provision (sec. 303) that
would authorize the appropriation of $71.4 million from the
Armed Forces Retirement Home Trust Fund for fiscal year 2002
and $22.4 million for the development and construction of a
blended use, multicare facility and acquisition of land at the
Naval Home.
The House amendment contained a similar provision (sec.
303).
The House recedes with a clarifying amendment.
Transfer from National Defense Stockpile Transaction Fund (sec. 304)
The House amendment contained a provision (sec. 304) that
would authorize the transfer of $150.0 million from the
National Defense Stockpile Transaction Fund to operation and
maintenance accounts of the Army, Navy and Air Force.
The Senate bill contained no similar provision.
The Senate recedes.
Funds for renovation of Department of Veterans Affairs facilities
adjacent to Naval Training Center, Great Lakes, Illinois (sec.
305 )
The Senate bill contained a provision (sec. 309) that
would authorize the Secretary of the Navy to use up to $2.0
million to fund the renovation and relocation of Department of
Veterans Affairs facilities in the proximity of the Naval
Training Center, Great Lakes, Illinois. The provision would
make the authorization contingent on the Secretary of Veterans
Affairs and the Secretary of the Navy entering into an
agreement to provide 48 acres of Department of Veterans Affairs
property for the expansion of the Naval Training Center.
The House amendment contained no similar provision.
The House recedes.
Defense Language Institute Foreign Language Center expanded Arabic
language program (sec. 306)
The Senate bill contained a provision (sec. 338) that
would authorize $650,000 of the amounts available in the
Operation and Maintenance, Army, account for an expanded Arabic
language program at the Defense Language Institute.
The House amendment contained no similar provision.
The House recedes.

Subtitle B--Environmental Provisions

Inventory of unexploded ordnance, discarded military munitions, and
munitions constituents at defense sites (other than operational
ranges) (sec. 311)
The House amendment contained a provision (sec. 311) that
would require the Department of Defense to inventory sites that
are known or suspected to contain abandoned military munitions.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would: (1)
provide that the inventory requirement does not apply to
operating storage and manufacturing facilities, operational
ranges, or locations outside the United States; (2) clarify the
definitions of military munitions, operational ranges,
unexploded ordnance and other key terms; (3) require
consultation with representatives of States and Tribes in the
development of a protocol for site prioritization; (4) clarify
that the prioritization of sites does not impair, alter or
diminish the Department's obligations under federal or state
law; and (5) extend the time period available for the
Department to complete the inventory and prioritization of
sites.
Establishment of new program element for remediation of unexploded
ordnance, discarded military munitions, and munitions
constituents (sec. 312)
The Senate bill contained a provision (sec. 311) that
would require the Secretary of Defense to establish within each
environmental restoration account established for the
Department of Defense a sub-account for the remediation of
unexploded ordnance and related constituents.
The House amendment contained no similar provision.
The House recedes with an amendment that would: (1)
establish program elements, rather than sub-accounts, within
each of the environmental restoration accounts; and (2) clarify
that the accounts cover discarded munitions as well as
unexploded ordnance and related constituents.
Assessment of environmental remediation of unexploded ordnance,
discarded military munitions, and munitions constituents (sec.
313)
The Senate bill contained a provision (sec. 312) that
would require the Department of Defense to conduct a
comprehensive assessment and develop a plan for addressing
unexploded ordnance, discarded munitions and related
constituents on Department of Defense facilities and
installations.
The House amendment contained no similar provision.
The House recedes with an amendment that would: (1)
harmonize the terminology and scope of this provision with
other provisions related to unexploded ordnance; and (2) delay
from calendar year 2002 to calendar year 2003 the due date of
the required report. The conference report would require the
Department of Defense to provide an interim report containing
all available information in calendar year 2002.
Conformity of surety authority under environmental restoration program
with surety authority under CERCLA (sec. 314)
The Senate bill contained a provision (sec. 316) that
would eliminate the sunset date for the surety provisions in
section 2701 of title 10, United States Code.
The House amendment contained no similar provision.
The House recedes with a technical amendment to the
title.
Elimination of annual report on contractor reimbursement for costs of
environmental response actions (sec. 315)
The House amendment contained a provision (sec. 315) that
would remove the requirement for the Department of Defense to
report to Congress on contractor reimbursement for costs of
environmental response actions for the top 20 defense
contractors.
The Senate bill contained no similar provision.
The Senate recedes with a technical amendment.
Pilot program for sale of air pollution emission reduction incentives
(sec. 316)
The Senate bill contained a provision (sec. 314) that
would extend through September 30, 2003, the authority for the
Department of Defense to conduct a pilot program for the sale
of air pollution emission reduction incentives.
The House amendment contained no similar provision.
The House recedes with an amendment requiring the
Secretary of Defense to report to Congress on the use of the
program.
Department of Defense energy efficiency program (sec. 317)
The Senate bill contained a provision (sec. 313) that
would require the Secretary of Defense to carry out a program
to significantly improve the energy efficiency of the
Department of Defense over the next 10 years, and require the
Department to report to Congress on progress in implementing
that program.
The House amendment contained a provision (sec. 1050)
expressing the sense of Congress that the Department should
work to implement fuel efficiency reforms.
The House recedes with an amendment that would
incorporate the sense of Congress into the provision and ensure
that the reports to Congress include the same information in
the same format as is already generated for executive branch
purposes.
Procurement of alternative fueled and hybrid light duty trucks (sec.
318)
The Senate bill contained a provision (sec. 317) that
would require the Secretary of Defense to purchase hybrid
electric vehicles, to the extent that such vehicles are
commercially available and meet the Department of Defense's
requirements, for the Department of Defense fleet of light duty
trucks that is not already subject to the requirement to
purchase alternative fueled vehicles pursuant to the Energy
Policy Act of 1992 (42 U.S.C. 13212).
The House amendment contained no similar provision.
The House recedes with an amendment that would expand the
coverage of the provision to all types of hybrid vehicles, to
ensure that hybrid vehicles other than hybrid-electric vehicles
(such as hybrid hydrogen or fuel-cell vehicles) would also be
eligible for purchase under the provision.
Reimbursement of Environmental Protection Agency for certain response
costs in connection with Hooper Sands site, South Berwick,
Maine (sec. 319)
The Senate bill contained a provision (sec. 315) that
would authorize the Secretary of Defense to reimburse the
Environmental Protection Agency (EPA) for environmental costs
incurred by the EPA consistent with the January 2001 agreement
between the Navy and the EPA.
The House amendment contained a similar provision (sec.
313).
The House recedes with a technical amendment.
River mitigation studies (sec. 320)
The House amendment contained a provision (sec. 314) that
would authorize the Secretary of Defense to conduct mitigation
studies in two locations and to work with federal, state, local
and private entities to address problems that may be
identified.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would authorize
the studies and require that each study address the extent, if
any, to which the Department of Defense (DOD) is responsible
for any problems identified. The conference agreement does not
authorize the use of DOD funds to address these problems. The
conferees understand that any action would be conducted only
under existing authority and in accordance with applicable
procedures and requirements.

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Commissary benefits for new members of the Ready Reserve (sec. 331)
The Senate bill contained a provision (sec. 662) that
would grant new members of the Ready Reserve access to
commissary stores.
The House amendment contained a similar provision (sec.
321).
The House recedes.
Reimbursement for use of commissary facilities by military departments
for purposes other than commissary sales (sec. 332)
The Senate bill contained a provision (sec. 322) that
would require service secretaries to reimburse the Defense
Commissary Agency for a share of the depreciated value of a
commissary facility when a military department uses, for non-
commissary related purposes, a facility previously acquired,
constructed, or improved with commissary surcharge funds.
The House amendment contained a similar provision (sec.
322).
The House recedes.
Public releases of commercially valuable information of commissary
stores (sec. 333)
The Senate bill contained a provision (sec. 323) that
would authorize the Secretary of Defense to limit release to
the public of commercially valuable commissary store
information and to use competitive contracting procedures to
sell commissary sales data, customer demographic information,
and information pertaining to commissary transactions and
operations.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Rebate agreements with producers of foods provided under special
supplemental food program (sec. 334)
The Senate bill contained a provision (sec. 321) that
would authorize the Secretary of Defense to enter into annual
contracts for rebates with producers of food products for the
exclusive right to provide food in commissary stores as
supplemental food for the Women, Infants, and Children (WIC)
Overseas Program.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Civil recovery for nonappropriated fund instrumentality costs related
to shoplifting (sec. 335)
The House amendment contained a provision (sec. 323) that
would authorize the military exchanges to pursue federal debt
collection remedies against shoplifters in the military
exchange stores.
The Senate bill contained no similar provision.
The Senate recedes.

Subtitle D--Workforce and Depot Issues

Revision of authority to waive limitation on performance of depot-level
maintenance (sec. 341)
The Senate bill contained a provision (sec. 335) that
would elevate the current authority to waive limitations on
performance of depot-level maintenance to the Secretary of
Defense. The provision also required the Secretary to submit to
the Congress a strategic plan on the operations of public
depots.
The House amendment contained no similar provision.
The House recedes with an amendment that would remove the
statutory requirement for a report. The conferees are aware,
however, that the Air Force is developing a strategic plan for
the future operation and use of the Air Logistics Centers. The
conferees believe that such a plan is essential, and direct the
Secretary of the Air Force to submit this plan to the
Committees on Armed Services of the Senate and the House of
Representatives not later than January 31, 2002.
Exclusion of certain expenditures from limitation on private sector
performance of depot-level maintenance (sec. 342)
The House amendment contained a provision (sec. 335) that
would establish a five-year pilot program at three Air Force
depots. The program would exclude work performed in a public
depot under a public-private partnership from restrictions
included in title 10, United States Code relating to private
sector work.
The Senate bill contained a similar provision (sec. 332).
The House recedes with an amendment that would expand the
program to all Centers of Industrial and Technical Excellence
and set the program length at four years.
Protections for purchasers of articles and services manufactured or
performed by working-capital funded industrial facilities of
the Department of Defense (sec. 343)
The House amendment contained a provision (sec. 336) that
would permit a private sector entity that has contracted with
the public sector in a working capital-funded activity of the
Department of Defense to file a claim if the public sector
fails to comply with quality, schedule, or cost performance as
required by the contract.
The Senate bill contained no similar provision.
The Senate recedes.
Revision of deadline for annual report on commercial and industrial
activities (sec. 344)
The Senate bill contained a provision (sec. 1024) that
would change the due date for the Commercial Activities Report
to Congress, required by section 2461(g) of title 10, United
States Code, from February 1 to June 30 of each year, as
requested by the Department of Defense.
The House amendment contained no similar provision.
The House recedes.
Pilot manpower reporting system in Department of the Army (sec. 345)
The House amendment contained a provision (sec. 333) that
would require the Department of the Army to report annually on
the size of its contractor workforce.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of the Army to provide to Congress an annual
report describing the use of non-federal entities that provide
services to the Department of the Army during fiscal years 2002
through 2004. The amendment would also clarify that the
Secretary of the Army would be required to use existing data
collection and reporting systems to compile this report, and
would not be permitted to impose any new data requirements on
non-federal entities.
The conferees note that a similar provision, applicable
to all three military services, was included in section 343 of
the National Defense Authorization Act for Fiscal Year 2000.
The Navy and the Air Force complied with this provision without
establishing any new data collection systems or imposing any
new data requirements on contractors. The conferees expect the
Army to implement the new provision in a similar manner,
without establishing any new data collection systems or
imposing any new data requirements on contractors.
Development of Army Workload and Performance System and Wholesale
Logistics Modernization Program (sec. 346)
The House amendment contained a provision (sec. 334) that
prohibited the Secretary of the Army from expanding the
Wholesale Logistics Modernization Program (WLMP) beyond the
original legacy systems until those legacy systems have been
replaced.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that requires the
Secretary of the Army to maintain the functionality and
identity of the Army Workload and Performance System (AWPS) as
the WLMP moves forward. The Secretary of the Army will also
ensure that the AWPS continues to be the standard Army-wide
manpower system.
The amendment requires an annual report to the Congress
on AWPS implementation. The report will be evaluated by the
General Accounting Office.

Subtitle E--Defense Dependents Education

Assistance to local educational agencies that benefit dependents of
members of the armed forces and Department of Defense civilian
employees (sec. 351)
The House amendment contained a provision (sec. 341) that
would authorize $30.0 million for educational assistance to
local education agencies where the standard for the minimum
level of education within the state could not be maintained
because of the large number of military connected students, and
$1.0 million for payments to local education agencies to assist
in adjusting to reductions in military dependent students
resulting from the closure or realignment of military
installations.
The Senate bill contained a similar provision (sec. 304)
that would authorize $35.0 million for impact aid to local
education agencies.
The Senate recedes.
Impact aid for children with severe disabilities (sec. 352)
The Senate bill contained a provision (sec. 305) that
would authorize $5.0 million for continuation of the Department
of Defense assistance program to local educational agencies
that benefit dependents with severe disabilities.
The House amendment contained no similar provision.
The House recedes with a technical amendment.
Availability of auxiliary services of defense dependents' education
system for dependents who are home school students (sec. 353)
The House amendment contained a provision (sec. 342) that
would require the Department of Defense (DOD) to provide
support for home schooled students who are otherwise eligible
to attend DOD schools.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would remove
participation in individual academic courses from the services
available to dependents who are home schooled and add a
requirement that the home schooled students must comply with
the standards of conduct applicable to other students using or
receiving the same auxiliary services.
Comptroller General study of adequacy of compensation provided for
teachers in the Department of Defense overseas dependents'
schools (sec. 354)
The Senate bill contained a provision (sec. 1122) that
would require the Comptroller General to conduct a study and
report on whether compensation for teachers in the defense
dependents' education program is adequate for recruiting and
retaining high quality teachers, and whether changes in the
methodology for computing teacher pay are necessary.
The House amendment contained a similar provision (sec.
343) that would require the Secretary of Defense to conduct the
study.
The House recedes with an amendment that would change the
date to May 1, 2002, that the Comptroller General must report
to Congress on the results of the study.

Subtitle F--Other Matters

Availability of excess defense personal property to support Department
of Veterans Affairs initiative to assist homeless veterans
(sec. 361)
The House amendment contained a provision (sec. 351) that
would permit the Secretary of Defense to make excess clothing,
shoes, sleeping bags, and related non-lethal excess supplies
available, without reimbursement, to the Secretary of Veterans
Affairs for distribution to homeless veterans and programs
assisting homeless veterans.
The Senate bill contained no similar provision.
The Senate recedes.
The conferees direct the Secretary of Defense to ensure
that adequate safeguards are in place to prevent procurement of
those items and declaring them excess and available for
distribution shortly after receipt.
Incremental implementation of Navy-Marine Corps Intranet contract (sec.
362)
The House amendment contained a provision (sec. 352) that
permanently excluded the Marine Corps from the Navy-Marine
Corps Intranet (NMCI) program, and extended exclusions for
naval aviation depots and shipyards through fiscal year 2002.
The Senate bill contained a provision (sec. 334) that
codified the Department of Defense's plan to rephase the
implementation of the NMCI program, based on achievement of
specified testing and performance milestones.
The House recedes with an amendment that more fully
describes additional phase-in authority for the NMCI. The
amendment allows the Secretary of the Navy to contract for an
additional 100,000 work stations (the ``second increment''),
pending joint approval by the Under Secretary of Defense
(Acquisition, Technology, and Logistics) and the Department of
Defense (DOD) Chief Information Officer (CIO). This approval is
dependent on successful completion of a three-phase customer
test and evaluation (known as CT&E3), as detailed in the Master
Test Plan maintained by the NMCI contractor. Tests shall be
conducted on a representative, statistically-significant sample
population of NMCI work stations. The validity of the results
will be independently evaluated and confirmed by the Institute
for Defense Analyses.
The amendment permits the Secretary of the Navy to order
a third increment of an additional 150,000 work stations,
pending successful performance of at least 20,000 work stations
operating on the NMCI network. Certification of this
performance must be made by the Navy CIO to the Secretary of
the Navy and the DOD CIO. The amendment further restricts the
NMCI contractor from assuming responsibility for more than half
of the work stations allowed to be ordered in the third
increment until the Navy CIO certifies to the Secretary of the
Navy and the DOD CIO that the work stations for the full
headquarters at the Naval Air Systems Command (NAVAIR) are
meeting applicable service-level agreements.
The amendment also requires the Secretary of the Navy to
submit to Congress a report on the scope and status of testing
and implementation of the NMCI network at the point at which
the second and third increments of work stations are ordered.
The same information shall be submitted when the performance
requirements for NAVAIR headquarters have been met and
authority for the NMCI contractor to assume responsibility for
the remaining 75,000 seats in the third increment is granted.
The conferees intend for these reports to be complete but
succinct, and to the extent possible to draw upon information
already reported within the Department of Defense.
The amendment also requires the General Accounting Office
to conduct a study of the impact of NMCI implementation on the
rate structure of naval shipyards and depots. Finally, the
amendment requires the Secretary of the Navy to identify a
single individual whose sole responsibility will be to direct
and oversee the NMCI program.
The conferees are concerned that schedule delays have
limited the amount of empirical information about the viability
and performance of the NMCI. The slowdowns in the NMCI program
have resulted in a difficult situation. Continuing the program
requires additional orders of work stations, but so few work
stations have been converted to the network that it is not yet
clear whether the program will operate as intended. Despite
some lingering concerns, the conferees have adopted a plan,
based on continued demonstrations of successful testing and
performance capabilities, that is intended to allow the program
to move forward in a prudent manner. The conferees expect that
the Navy, in a departure from past practice, will be fully and
readily forthcoming with information about and explanations for
any future delays or performance concerns. The conferees'
designation of a single NMCI manager is intended to facilitate
such communication with the Congress, which is of particular
importance given the size and operational impact of the NMCI
program.
Comptroller General Study and Report of National Guard Distributive
Training Technology Project (sec. 363)
The Senate bill contained a provision (sec. 1027) that
directed the Comptroller General to conduct a study of the
interconnectivity between the voice, data, and video networks
of the National Guard Distributive Training Technology Project
(DTTP) and other Department of Defense, federal, state and
private networks.
The purpose of the study was to identify existing
capabilities and future networking requirements for operational
support of disaster response, homeland defense, command and
control of premobilization forces, training of military
personnel, training of first responders and shared use of the
DTTP networks by government and members of the networks. The
Comptroller General was also directed to identify appropriate
connections between DTTP networks and those networks at the
federal and state level responsible for disaster response and
to identify requirements for, impediments to, and means of
improving connectivity between DTTP and the other networks. The
Comptroller General was required to submit a report on the
study to the Armed Services Committees of the Senate and the
House of Representatives no more than 180 days after the date
of enactment of the Act.
The House amendment contained no similar provision.
The House recedes with an amendment that clarifies the
need for the Army National Guard to establish the current and
future requirements associated with the DTTP. In order for the
Comptroller General to conduct a proper review and analysis,
the Army National Guard must first clearly articulate these
requirements. Under the conference agreement the Comptroller
General shall submit its report to the Armed Services
Committees of the Senate and the House of Representatives
within 270 days after the date of enactment of this Act.
Reauthorization of warranty claims recovery pilot program (sec. 364)
The Senate bill contained a provision (sec. 336) that
would reauthorize a pilot program allowing the Secretary of
Defense to use commercial services to improve the collection of
Department of Defense claims for aircraft engine warranties.
The House amendment contained no similar provision.
The House recedes.
Evaluation of current demonstration programs to improve quality of
personal property shipments of members (sec. 365)
The House amendment contained a provision (sec. 353) that
would require the Department of Defense to complete all
demonstration programs to improve the movement on household
goods for members of the Armed Forces. The provision also
required the Secretary of Defense to submit to the Congress an
evaluation of these programs no later than August 31, 2002.
The Senate bill contained no similar provision.
The conferees understand that the Department of Defense
has cancelled the remaining pilot program that would have been
continued under the House provision. The conferees maintain
that reengineering the household goods moving process continues
to be an important quality of life initiative, and that
termination of the Full Service Moving Project does not relieve
the Department of Defense of its responsibilities to improve
the moving process. The Senate therefore recedes with an
amendment that would require the Secretary of Defense to
complete an evaluation of all ongoing test programs for
household goods moves. No later than March 31, 2002, the
Secretary shall submit to the Congress a report on the findings
of this evaluation, recommendations for policy improvements,
and an estimate of associated costs.
Sense of Congress regarding security to be provided at 2002 Winter
Olympic Games (sec. 366)
The House amendment contained a provision (sec. 355) that
would express the sense of Congress that the Secretary of
Defense should provide public safety support for the 2002
Winter Olympic Games in Salt Lake City, Utah.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment that notes
the need for the certification of the Attorney General pursuant
to section 2564(a) of title 10, United States Code.

Legislative Provisions Not Adopted

Applicability of core logistics capability requirements to nuclear
aircraft carriers
The House amendment contained a provision (sec. 332) that
would exclude refueling of nuclear aircraft carriers, rather
than all maintenance work on such ships, from the core
logistics capabilities that the Department of Defense
maintains.
The Senate bill contained no similar provision.
The House recedes.
Authorization of additional funds
The Senate bill contained a provision (sec. 308) that
would authorize the use of $2.0 million of operation and
maintenance funds for Defense-Wide accounts to refurbish and
replace air handlers and related control systems at Air Force
medical centers.
The House amendment contained no similar provision.
The Senate recedes on the provision.
The conferees agree to authorize $2.0 million of the
funds available for Operation and Maintenance, Defense-Wide,
for Air Force air handlers.
Consequence management training
The Senate bill contained a provision (sec. 339) that
would authorize the use of $5.0 million of operation and
maintenance funds for Defense-Wide activities to provide
training for members of the armed forces (including reserve
component personnel) in managing the consequences of an
incident involving the use or threat of use of a weapon of mass
destruction.
The House amendment contained no similar provision.
The Senate recedes on the provision.
The conferees agree to authorize $5.0 million of the
funds available for Operation and Maintenance, Defense-Wide,
for consequence management training for both active and reserve
component military personnel.
Critical infrastructure protection initiative of the Navy
The Senate bill contained a provision (sec. 340) that
would authorize the use of $6.0 million of operation and
maintenance funds for the Navy for the critical infrastructure
protection initiative.
The House amendment contained no similar provision.
The Senate recedes on the provision.
The conferees agree to authorize $6.0 million of the
funds available for Operation and Maintenance, Navy, for the
critical infrastructure protection initiative.
Environmental restoration, Formerly Used Defense Sites
The Senate bill contained a provision (sec. 307) that
would increase the authorized funding for the environmental
restoration of Formerly Used Defense Sites (FUDS) by $40.0
million.
The House amendment contained no similar provision.
The Senate recedes.
The conferees agree to increase funding for environmental
restoration of FUDS by $40.0 million.
The conferees note that there are over 9,000 properties
identified for inclusion in the FUDS program, hundreds of which
could be categorized as former ranges. Historically, the FUDS
program has experienced significant funding shortfalls, making
it difficult to execute much needed remediation projects at
these sites. In an effort to address this problem, Congress
included additional funds for FUDS remediation in fiscal years
2000 and 2001. These funding increases merely helped to address
some, not all of the funding shortfalls. The fiscal year 2002
budget request again failed to adequately address this funding
problem.
The conferees direct the Secretary of Defense to
comprehensively resolve this issue within the Department of
Defense with a special emphasis on the Department of the Army.
The conferees expect the Secretary of Defense to ensure that
the fiscal year 2003 budget request reflects progress in this
area. In addition, the conferees direct the Secretary of
Defense to submit a report in conjunction with the fiscal year
2003 budget request that provides a future years plan for
resolution of the FUDS funding shortfalls.
Expansion of entities eligible for loan, gift, and exchange of
documents, historical artifacts, and obsolete combat materiel
The House amendment contained a provision (sec. 354) that
would expand the list of entities eligible to receive certain
materials from the Department of Defense.
The Senate bill contained no similar provision.
The House recedes. The text of the House provision is
incorporated into a separate provision addressing Department of
Defense gift authorities (sec. 1043).
Funding for land forces information operations sustainment
The Senate bill contained a provision (sec. 337) that
would authorize the use of $5.0 million of operation and
maintenance funds for the Army Reserve for information
operations sustainment.
The House amendment contained no similar provision.
The Senate recedes on the provision.
The conferees agree to authorize $5.0 million of the
funds available for Operation and Maintenance, Army Reserve,
for information operations sustainment.
Improvements in instrumentation and targets at Army live-fire training
ranges
The Senate bill contained a provision (sec. 306) that
would increase funding for improvements in Army live-fire
ranges by $11.9 million, offset by reductions in the fuel
accounts of the Defense Working Capital Fund.
The House amendment contained no similar provision.
The Senate recedes on the provision, and the conferees
agree to authorize additional funds.
Limitation on workforce reviews
The House amendment contained a provision (sec. 331) that
would: (1) limit the number of workforce reviews that could be
performed by the Department of Defense until certain conditions
were met; and (2) prohibit the conversion of Department of
Defense functions to private sector performance unless the cost
savings from doing so would be at least 10 percent.
The Senate bill contained no similar provision.
The House recedes.

Title IV--Military Personnel Authorizations

Legislative Provisions Adopted

Subtitle A--Active Forces

End strengths for active forces (sec. 401)
The Senate bill contained a provision (sec. 401) that
would authorize active duty end strengths for fiscal year 2002,
as shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
2001 -------------------------------
Authorization 2002
2002 request recommendation
----------------------------------------------------------------------------------------------------------------
Army............................................................ 480,000 480,000 480,000
Navy............................................................ 372,642 376,000 376,000
Marine Corps.................................................... 172,600 172,600 172,600
Air Force....................................................... 357,000 358,800 358,800
----------------------------------------------------------------------------------------------------------------

The House amendment contained an identical provision
(sec. 401).
The conference agreement includes this provision.
Revision in permanent end strength minimum levels (sec. 402)
The House amendment contained a provision (sec. 402) that
would establish end strength floors for the active forces at
the end strengths contained in the budget request.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Increase in senior enlisted active duty grade limit for Navy, Marine
Corps, and Air Force (sec. 403)
The House amendment contained a provision (sec. 504) that
would increase the limitation on the authorized daily average
number of enlisted members serving on active duty within an
armed force in the pay grade of E-8 from two percent to two and
one half percent of the total number of enlisted members of
that armed force on active duty on the first day of that fiscal
year.
The Senate bill contained a similar provision (sec. 402).
The Senate recedes with a clarifying amendment.

Subtitle B--Reserve Forces

End strengths for Selected Reserve (sec. 411)
The Senate bill contained a provision (sec. 411) that
would authorize Selected Reserve end strengths for fiscal year
2002, as shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
2001 -------------------------------
authorization 2002
2002 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States.................... 350,526 350,000 350,000
The Army Reserve................................................ 205,300 205,000 205,000
The Navy Reserve................................................ 88,900 87,000 87,000
The Marine Corps Reserve........................................ 39,558 39,558 39,558
The Air National Guard of the United States..................... 108,022 108,400 108,400
The Air Force Reserve........................................... 74,358 74,700 74,700
The Coast Guard Reserve......................................... 8,000 8,000 8,000
----------------------------------------------------------------------------------------------------------------

The House amendment contained an identical provision
(sec. 411).
The conference agreement includes this provision.
End strengths for reserves on active duty in support of the reserves
(sec. 412)
The Senate bill contained a provision (sec. 412) that
would authorize the full-time support end strengths for fiscal
year 2002, as shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
2001 -------------------------------
authorization 2002
2002 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States.................... 22,974 22,974 23,698
The Army Reserve................................................ 13,106 13,108 13,406
The Navy Reserve................................................ 14,649 14,811 14,811
The Marine Corps Reserve........................................ 2,261 2,261 2,261
The Air National Guard of the United States..................... 11,170 11,591 11,591
The Air Force Reserve........................................... 1,336 1,437 1,437
----------------------------------------------------------------------------------------------------------------

The House amendment contained a similar provision (sec.
412).
The House recedes.
End strengths for military technicians (dual status) (sec. 413)
The Senate bill contained a provision (sec. 413) that
would authorize the minimum level of dual status technician end
strengths for fiscal year 2002, as shown below:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
2001 -------------------------------
authorization 2002
2002 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army Reserve................................................ 5,921 5,999 6,249
The Army National Guard of the United States.................... 23,128 23,128 23,615
The Air Force Reserve........................................... 9,785 9,818 9,818
The Air National Guard of the United States..................... 22,247 22,422 22,422
----------------------------------------------------------------------------------------------------------------

The House amendment contained a provision (sec. 413) that
would authorize the following end strengths for military
technicians (dual status) as of September 30, 2002:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
2001 -------------------------------
authorization 2002
2002 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army Reserve................................................ 5,921 5,999 5,999
The Army National Guard of the United States.................... 23,128 23,128 23,128
The Air Force Reserve........................................... 9,785 9,818 9,818
The Air National Guard of the United States..................... 22,247 22,422 22,422
----------------------------------------------------------------------------------------------------------------

The House recedes.
Fiscal year 2002 limitation on non-dual status technicians (sec. 414)
The House amendment contained a provision (sec. 414) that
would establish the following limits on the numbers of non-dual
status technicians as of September 30, 2002:

----------------------------------------------------------------------------------------------------------------
Fiscal year--
-------------------------------
2001 limit 2002
2002 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army Reserve................................................ 1,195 1,095 1,095
The Army National Guard of the United States.................... 1,600 1,600 1,600
The Air Force Reserve........................................... 10 0 90
The Air National Guard of the United States..................... 326 350 350
----------------------------------------------------------------------------------------------------------------

The Senate bill contained a similar provision (sec. 414).
The Senate recedes.
Limitations on numbers of reserve personnel serving on active duty or
full-time National Guard duty in certain grades for
administration of reserve components (sec. 415)
The House amendment contained a provision (sec. 415) that
would authorize new grade tables for all reserve components of
the military departments to limit the number of officers and
senior enlisted members serving on active duty or full-time
National Guard Duty in the pay grades of 0-6, 0-5, 0-4, E-9,
and E-8.
The Senate bill contained a similar provision (sec. 415).
The Senate recedes with a clarifying amendment.

Subtitle C--Other Matters Relating to Personnel Strengths

Administration of end strengths (sec. 421)
The House amendment contained a provision (sec. 421) that
would authorize the Secretary of Defense to increase the active
duty end strength of a military service up to two percent above
the authorized end strengths for that service.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would authorize
the President to waive any statutory end strength at the end of
any fiscal year during which there is in effect a war or
national emergency.
Active duty end strength exemption for National Guard and reserve
personnel performing funeral honors functions (sec. 422)
The House amendment contained a provision (sec. 422) that
would permit members of the reserve components on active duty
and members on full-time National Guard duty to prepare for and
perform funeral honors functions without counting against the
active duty end strengths of the armed forces.
The Senate bill contained a similar provision (sec. 561).
The Senate recedes.

Subtitle D--Authorization of Appropriations

Authorization of appropriations for military personnel (sec. 431)
The Senate bill contained a provision (sec. 421) that
would authorize a total of $82,396.9 million to be appropriated
to the Department of Defense for military personnel.
The House amendment contained a provision (sec. 431) that
would authorize $82,279.1 million to be appropriated to the
Department of Defense for military personnel.
The House recedes with an amendment that would authorize
$82,307.3 million to be appropriated to the Department of
Defense for military personnel.
The conferees provide the following itemization of the
increases and decreases from the budget request related to the
military personnel accounts:

MILITARY PERSONNEL ACCOUNTS

[Additions in millions]

Conference
agreement
Officer Uniform Allowances........................................ 4.0
Authorize TLE for Officer First Duty Station...................... 6.0
Increase TLE to $180 per day...................................... 39.0
Pet Quarantine Reimbursement...................................... 1.0
Additional Army Guard AGR End Strength............................ 24.7
Additional Army Reserve AGR End Strength.......................... 8.3
Transferability of MGIB Benefits.................................. 30.0
DLA for Members w/Dependents at First Duty Station................ 36.0
Education Savings Bonds........................................... 20.0
______
169.0

MILITARY PERSONNEL ACCOUNTS

[Reductions in millions]

Conference
agreement
Savings from Installment Payments for 15-year Career Status Bonus. 30.0
Air Force End Strength and Grade Underexecution................... 129.0
Savings from DOD Proposals Not Enacted............................ 10.0
______
169.0

Legislative Provisions Not Adopted

Increase in authorized strengths for Air Force officers on active duty
in the grade of major
The House amendment contained a provision (sec. 423) that
would authorize a seven percent increase in the maximum number
of officers serving on active duty in the grade of major.
The Senate bill contained no similar provision.
The House recedes.
Strength and grade limitation accounting for reserve component members
on active duty in support of a contingency operation
The Senate bill contained a provision (sec. 416) that
would authorize the Secretary of Defense to increase the limit
on active duty end strengths of members of the reserve
components in pay grades E-8, E-9, O-4, O-5, O-6, and general
and flag officers by the number in those pay grades serving on
active duty, with their consent, in support of a contingency
operation.
The House amendment contained no similar provision.
The Senate recedes.

Title V--Military Personnel Policy

Legislative Provisions Adopted

Subtitle A--Officer Personnel Policy

Enhanced flexibility for management of senior general and flag officer
positions (sec. 501)
The Senate bill contained a provision (sec. 501) that
would increase the grade of the Vice Chief of the National
Guard Bureau to lieutenant general, the grades of the heads of
the Nurse Corps for the Army and the Air Force to major general
and of the Navy to rear admiral (upper half), and the grade of
the Chief of Army Veterinary Corps to brigadier general. The
provision would also authorize one additional Marine general
above the grade of major general and exclude an officer serving
as the Senior Military Assistant to the Secretary of Defense in
the grade of general or lieutenant general, or admiral or vice
admiral, from the limit on officers serving in that grade for
his or her service, and would repeal the limit on the number of
officers on active duty in the grades of general or admiral.
The House amendment contained a provision (sec. 501) that
would repeal the limit on the number of officers on active duty
in the grades of general or admiral.
The House recedes with an amendment that would repeal the
limit on the number of officers on active duty in the grades of
general or admiral.
The conferees are concerned about the various proposals
received each year for authorizing new general or flag officer
positions, increasing the total number of general and flag
officers, and exempting general and flag officers from current
grade limits. The conferees are also aware that changes made as
a result of the Defense Strategy Review and the Quadrennial
Defense Review may result in changes in requirements for
general and flag officers.
Rather than addressing individual proposals piecemeal,
the conferees direct the Secretary of Defense, using current
data and requirements, to conduct a comprehensive review, as
delineated by section 1213 of the National Defense
Authorization Act for Fiscal Year 1997, of the existing
statutory reserve and active general and flag officer
authorizations. The Secretary should report the results of the
review to Congress no later than six months after the date of
enactment of this Act, together with any recommendations for
revisions to those authorizations.
Certifications of satisfactory performance for retirement of officers
in grades above major general and rear admiral (sec. 502)
The Senate bill contained a provision (sec. 507) that
would authorize the Secretary of Defense to delegate to the
Under Secretary of Defense for Personnel and Readiness or the
Deputy Under Secretary of Defense for Personnel and Readiness
the authority to certify to the President and to Congress that
certain officers have served satisfactorily in the grade of
general, admiral, lieutenant general, or vice admiral before
authorizing retirement in that grade. The provision would
require the Secretary of Defense to act personally on cases
where there is potentially adverse information that has not
previously been reported to the Senate in connection with a
previous appointment.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Review of actions of selection boards (sec. 503)
The Senate bill contained a provision (sec. 585) that
would provide that service members or former service members
challenging the results of selection boards or promotion boards
are not entitled to relief in a judicial proceeding unless the
matter was first considered by a special board or a special
selection board, or the secretary concerned denied such
consideration.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
The conferees do not intend, by this provision, to change
the existing authority of the federal courts to determine the
validity of any statute, regulation or policy relating to
selection boards in any applicable form of action, including,
when authorized by law or by the rules of the court, a class
action.
Temporary reduction of time-in-grade requirement for eligibility for
promotion for certain active-duty list officers in grades of
first lieutenant and lieutenant (junior grade) (sec. 504)
The Senate bill contained a provision (sec. 502) that
would reduce the minimum time-in-grade for promotion of
lieutenants and lieutenants (junior grade) from two years to 18
months.
The House amendment contained a similar provision (sec.
503).
The House recedes with an amendment that would limit this
provision to officers with 18 months time-in-grade as first
lieutenants and lieutenants (junior grade) before October 1,
2005.
Authority for promotion without selection board consideration for all
fully qualified officers in grade of first lieutenant or
lieutenant (junior grade) in the Navy (sec. 505)
The Senate bill contained a provision (sec. 503) that
would authorize the promotion of officers on the active-duty
list and on the reserve active-status list to captain in the
Army, Air Force, or Marine Corps, or to the grade of lieutenant
in the Navy without selection board action when the secretary
concerned determines that all fully qualified officers eligible
for consideration for promotion are needed in the next higher
grade to accomplish mission objectives. The recommended
provision would provide that an officer who is not promoted
because the secretary concerned determines that the officer is
not fully qualified for promotion would be treated as having
failed of selection for promotion.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Authority to adjust date of rank of certain promotions delayed by
reason of unusual circumstances (sec. 506)
The Senate bill contained a provision (sec. 504) that
would authorize the service secretaries to adjust dates of rank
of officers in grades 0-6 and below when the officers'
promotions are delayed because of unusual circumstances causing
an unintended delay in the processing or approval of a report
of a selection board or promotion list.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Authority for limited extension of medical deferment of mandatory
retirement or separation (sec. 507)
The House amendment contained a provision (sec. 505) that
would authorize the secretaries of the military departments to
extend for an additional 30 days the deferment of mandatory
retirement or separation for medical reasons to provide a
member additional time to prepare for retirement or separation.
The Senate bill contained a similar provision (sec. 505).
The Senate recedes.
Authority for limited extension on active duty of members subject to
mandatory retirement or separation (sec. 508)
The House amendment contained a provision (sec. 506) that
would authorize the secretaries of the military departments to
extend for an additional 90 days the deferment of mandatory
retirement or separation due to the implementation of stop loss
authority to provide the military member additional time to
prepare for retirement or separation.
The Senate bill contained a similar provision (sec. 508).
The Senate recedes with a clarifying amendment.
Exemption from certain administrative limitations for retired officers
ordered to active duty as defense or service attaches (sec.
509)
The Senate bill contained a provision (sec. 506) that
would exclude retired members recalled to active duty for
service as defense or service attaches from the limitations on
the number of retired members who can be recalled to active
duty and from the time limit on the period of a recall to
active duty.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
The Secretary of Defense has repeatedly sought additional
exceptions to the limitations on retired members recalled to
active duty. The conferees believe that the Secretary of
Defense should have more flexibility to recall retired members
without seeking legislative authority to do so. Accordingly,
the conferees direct the Secretary of Defense to report, not
later than March 31, 2002, to the Committees on Armed Services
of the Senate and the House of Representatives on an
appropriate limit on the number of retirees in pay grade 0-6
and below who could serve on active duty at any one time if the
exceptions contained in sections 688(e)(2) and 690(b)(2) of
title 10, United States Code, were eliminated.
Officer in charge of United States Navy Band (sec. 510)
The House amendment contained a provision (sec. 508) that
would permit a Navy limited duty officer who holds the rank of
at least lieutenant commander to be detailed to serve in the
rank of captain while holding the position of officer in charge
of the United States Navy Band.
The Senate bill contained a similar provision (sec. 509).
The Senate recedes with a clarifying amendment.

Subtitle B--Reserve Component Personnel Policy

Placement on active-duty list of certain reserve officers on active
duty for a period of three years or less (sec. 511)
The House amendment contained a provision (sec. 511) that
would require members recalled to active duty for three years
or less to be placed on the active-duty list unless the service
secretary specifies in the service member's orders that the
member will be retained on the reserve active-status list.
The Senate bill contained a similar provision (sec. 512).
The Senate recedes.
Exception to baccalaureate degree requirement for appointment of
reserve officers to grades above first lieutenant (sec. 512)
The Senate bill contained a provision (sec. 511) that
would extend by three years, to September 30, 2003, the
authority of the Secretary of the Army to waive, on a case by
case basis, the requirement for reserve officers commissioned
through the Army Officer Candidate School to have been awarded
a baccalaureate degree before being promoted to the grade of
captain.
The House amendment contained a similar provision (sec.
513).
The House recedes with an amendment that would also
authorize the Secretary of the Navy to waive, on a case by case
basis, the requirement for a baccalaureate degree in the case
of reserve officers whose original appointment as a reserve
officer in the Marine Corps was through the Marine Corps
meritorious commissioning program.
The conferees intend that the service secretaries grant
waivers only to those officers who have demonstrated
substantial progress toward achieving the goal of earning a
baccalaureate degree.
Improved disability benefits for certain reserve component members
(sec. 513)
The House amendment contained a provision (sec. 514) that
would remove the requirement that reservists must be performing
inactive-duty for training at a site that is outside normal
commuting distance before being eligible for disability
benefits and programs if they incur or aggravate an injury,
illness, or disease in the line of duty when remaining
overnight at training locations before or between inactive-duty
training periods.
The Senate bill contained a similar provision (sec. 515).
The Senate recedes with a clarifying amendment.
Time-in-grade requirement for reserve component officers retired with a
nonservice-connected disability (sec. 514)
The House amendment contained a provision (sec. 515) that
would authorize retirement eligible reserve officers with non-
service-connected physical disabilities that disqualify the
officer from continued service to be retired in the highest
grade held by the officer for six months, regardless of other
time-in-grade requirements.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would limit
application of this provision to members whose nonservice-
connected-disabilities are incurred in the line of duty.
Equal treatment of reserves and full-time active duty members for
purposes of managing personnel deployments (sec. 515)
The Senate bill contained a provision (sec. 513) that
would amend the definition of deployment for reservists to
include performance of duty that makes it impossible or
infeasible to spend off-duty time in the housing that the
member usually occupies during off-duty time when on garrison
duty.
The House amendment contained a similar provision (sec.
516).
The House recedes with a clarifying amendment.
Modification of physical examination requirements for members of the
Individual Ready Reserve (sec. 516)
The Senate bill contained a provision (sec. 514) that
would eliminate the requirement that members of the Individual
Ready Reserve receive a physical examination every five years
and would require a physical examination as necessary to
determine the member's physical fitness for military duty or
for promotion, attendance at an armed forces' school, or other
action related to career progression.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Retirement of reserve members without requirement for formal
application or request (sec. 517)
The Senate bill contained a provision (sec. 516) that
would authorize the service secretaries to transfer to the
Retired Reserve officers who are required to be removed from
active status because of failure of selection for promotion,
length of service or age, and warrant officers and enlisted
members who are required to be discharged or removed from
active status because of years of service or age, unless the
member requests not to be transferred to the Retired Reserve.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Space-required travel by reserves on military aircraft (sec. 518)
The Senate bill contained a provision (sec. 517) that
would correct an impairment to authorized travel with
allowances for reservists performing annual training duty.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Payment of Federal Employee Health Benefit Program premiums for certain
reservists called to active duty in support of contingency
operations (sec. 519)
The House amendment contained a provision (sec. 588) that
would authorize federal agencies to pay both the employee and
government contributions to the Federal Employee Health Benefit
Program for federal employees who are members of a reserve
component who are called to active duty for more than 30 days
in support of a contingency operation.
The Senate bill contained no similar provision.
The Senate recedes.

Subtitle C--Joint Specialty Officers and Joint Professional Military
Education

Nominations and promotions for joint specialty officers (sec. 521)
The House amendment contained a provision (sec. 521) that
would provide for the automatic nomination of any officer who,
before or after the enactment of this provision, meets the
statutory education and service requirements for nomination as
a joint specialty officer (JSO).
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would provide
that, during the three-year period following enactment,
officers with a joint specialty are expected, as a group, to be
promoted at a rate not less than the rate for officers of the
same armed force in the same grade and competitive category.
The conferees intend that JSOs must remain highly
qualified and competitive for promotion within their services.
Following an assessment of recommendations made by an
independent study of joint officer management and joint
professional military education reforms, Congress will reassess
the promotion standard.
Joint duty credit (sec. 522)
The House amendment contained a provision (sec. 522) that
would prescribe standards and requirements for the Secretary of
Defense to award joint duty credit to officers serving in
temporary joint task force headquarters that are not engaged in
combat or near combat operations.
The Senate bill contained no similar provision.
The Senate recedes.
Retroactive joint service credit for duty in certain joint task forces
(sec. 523)
The House amendment contained a provision (sec. 523) that
would authorize the Secretary of Defense, after a case-by-case
review, to award joint service credit to an officer who served
in the headquarters of a temporary joint task force employed by
the United States during one or more of nine specific joint
operations that began during the period August 1, 1992, and
June 11, 1999.
The Senate bill contained no similar provision.
The Senate recedes.
Revision to annual report on joint officer management (sec. 524)
The House amendment contained a provision (sec. 524) that
would change some annual reporting requirements to reflect the
committee's recommended amendments to the joint officer
management system.
The Senate bill contained no similar provision.
The Senate recedes.
Requirement for selection for joint specialty before promotion to
general or flag officer grade (sec. 525)
The House amendment contained a provision (sec. 525) that
would require that after September 20, 2007, officers promoted
to brigadier general or rear admiral (lower half) must be
selected as a joint specialty officer (JSO) prior to their
promotion.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would permit
waiver of the requirement that officers must be selected as a
JSO as a condition for promotion to flag or general officer
under certain circumstances.
The conferees note that the Goldwater-Nichols Defense
Reorganization Act provided that both joint professional
military education and completion of one full tour of joint
duty, or, in certain circumstances, completion of two full
tours of duty in a joint duty assignment, were required to
qualify an officer as a JSO. In addition, the Goldwater-Nichols
Act required not only that all future senior leaders of joint
forces be joint specialty officers as a condition of assignment
as commander of a unified or specified command, but also
established that future Vice Chairmen of the Joint Chiefs of
Staff would also come from the ranks of JSOs. However, as a
precondition for promotion to brigadier general, or rear
admiral (lower half) the Goldwater-Nichols Act established a
less demanding standard, requiring only the completion of one
``full tour'' of joint duty, and not requiring Joint
Professional Military Education (JPME). Fifteen years after the
enactment of the Goldwater-Nichols Act, the conferees believe
that it is appropriate to require that officers selected for
general and flag officer rank should be drawn from the ranks of
JSOs.
The conferees believe that persons promoted to flag and
general officer should be held at least to the same standard as
other officers qualifying as JSOs. The conferees also believe
that it is not unreasonable to expect the services to include
completion of JPME and a joint duty tour in the career paths of
officers who are ultimately selected for promotion to general
and flag officer rank. To that end, the conferees desire that
the serving-in waiver be eliminated, if possible, through
creative approaches to career management, such as extending
mandatory retirement dates upon completion of JPME and/or
designation as a JSO; and require that the independent study
required elsewhere in this report specifically address the
feasibility and implications of eliminating the serving-in
waiver.
Independent study of joint officer management and joint professional
military education reforms (sec. 526)
The House amendment contained a provision (sec. 526) that
would require that the Secretary of Defense commission an
independent study of issues related to joint officer
management, joint professional military education, and the
roles of the Secretary and the Chairman of the Joint Chiefs of
Staff in managing and educating joint officers.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
that the entity conducting the study submit a report on the
study to Congress not later than one year after the date of
enactment of this Act.
Professional development education (sec. 527)
The House amendment contained a provision (sec. 527) that
would make the Secretary of Defense the executive agent for
funding professional development education operations at the
National Defense University beginning in fiscal year 2003.
The Senate bill contained no similar provision.
The Senate recedes.
Authority for National Defense University to enroll certain private
sector civilians (sec. 528)
The House amendment contained a provision (sec. 528) that
would permit up to 10 private sector employees of organizations
relevant to national security to receive instruction at the
National Defense University.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Continuation of reserve component professional military education test
(sec. 529)
The House amendment contained a provision (sec. 529) that
would require the Secretary of Defense to continue the concept
validation test of the Joint Professional Military Education
(JPME) course for reserve component officers in fiscal year
2002, and would authorize a broader pilot program in fiscal
year 2003 for reserve component JPME, if the Secretary
determines that the results of the concept validation test
merit it.
The Senate bill contained no similar provision.
The Senate recedes.

Subtitle D--Military Education and Training

Defense Language Institute Foreign Language Center (sec. 531)
The House amendment contained a provision (sec. 531) that
would authorize the commandant of the Defense Language
Institute to award an associate of arts degree in a foreign
language to graduates of the Institute's Foreign Language
Center who meet the requirements for the degree.
The Senate bill contained a similar provision (sec. 534).
The Senate recedes.
Authority for the Marine Corps University to award degree of master of
strategic studies (sec. 532)
The House amendment contained a provision (sec. 532) that
would authorize the president of the Marine Corps University to
confer the degree of master of strategic studies upon graduates
of the Marine Corps War College who meet the requirements for
that degree.
The Senate bill contained a similar provision (sec. 535).
The Senate recedes.
Foreign students attending the service academies (sec. 533)
The Senate bill contained a provision (sec. 536) that
would authorize the service secretaries to permit 60 persons
from foreign countries to attend the service's academy at any
one time and would authorize the Secretary of Defense to waive,
in whole or in part, the requirement for reimbursement of the
cost of providing instruction to a foreign cadet or midshipman.
The conferees expect the Department of Defense to
exercise its authority to waive reimbursement in a fiscally
prudent manner, recognizing the extraordinary value of a
service academy education. The Department should give full
consideration to all the factors concerning the ability of the
foreign country to provide partial or complete reimbursement.
The conferees direct the Secretary of Defense to include in the
justification materials submitted with the annual budget
request an exhibit describing the number of waivers granted and
the rationale for approving the waivers in each service.
The House amendment contained a similar provision (sec.
533).
The House recedes with a clarifying amendment.
Increase in maximum age for appointment as a cadet or midshipman in
Senior Reserve Officers' Training Corps scholarship programs
(sec. 534)
The House amendment contained a provision (sec. 534) that
would increase the maximum allowable age for the Senior Reserve
Officers' Training Corps scholarship program from age 27 on
June 30 of the year in which the officer candidate is expected
to be commissioned to age 35 on December 31 of the year in
which the officer candidate is expected to be commissioned.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would increase
the age to 31 years of age on December 31 of the year in which
the officer candidate is expected to be commissioned.
Participation of regular enlisted members of the armed forces in Senior
Reserve Officers' Training Corps program (sec. 535)
The Senate bill contained a provision (sec. 540) that
would authorize active duty enlisted members to participate in
the Senior Reserve Officers' Training Corps program.
The House amendment contained a similar provision (sec.
535).
The House recedes with a clarifying amendment.

Authority to modify the service obligation of certain ROTC cadets in
military junior colleges receiving financial assistance (sec.
536)

The House amendment contained a provision (sec. 536) that
would authorize the Secretary of the Army to permit military
junior college cadets who sign future Guaranteed Reserve Forces
Duty contracts to satisfy their service obligation through
either active duty service or reserve service in a troop
program unit.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.

Repeal of limitation on number of Junior Reserve Officers' Training
Corps units (sec. 537)

The Senate bill contained a provision (sec. 532) that
would repeal the limitation on the number of Junior Reserve
Officers Training Corps units.
The House amendment contained an identical provision
(sec. 538).
The conference agreement includes this provision.

Modification of nurse officer candidate accession program restriction
on students attending educational institutions with Senior
Reserve Officers' Training programs (sec. 538)

The House amendment contained a provision (sec. 537) that
would remove the restriction on nurse officer candidates
receiving financial assistance while training to be nurses at
institutions with Reserve Officer Training Corps programs.
The Senate bill contained a similar provision (sec. 620).
The Senate recedes.

Reserve health professionals stipend program expansion (sec. 539)

The House amendment contained a provision (sec. 539) that
would expand the stipend program for reserve health
professionals by authorizing medical and dental school students
to receive stipends and by authorizing continuing compensation
for medical and dental school graduates participating in
residency programs involving critical wartime specialties.
The Senate bill contained a similar provision (sec. 537).
The Senate recedes with a clarifying amendment.

Housing allowance for the chaplain for the Corps of Cadets at the
United States Military Academy (sec. 540)

The House amendment contained a provision (sec. 540) that
would authorize a housing allowance for the chaplain for the
Corps of Cadets at the United States Military Academy.
The Senate bill contained a similar provision (sec.
1121).
The Senate recedes with a clarifying amendment.

Subtitle E--Recruiting and Accession Programs

18-month enlistment pilot program (sec. 541)

The House amendment contained a provision (sec. 589) that
would authorize, during the period beginning on October 1, 2003
and ending on December 31, 2007, an 18-month enlistment pilot
program to increase the participation of prior service persons
in the Selected Reserve and increase the pool of participants
in the Individual Ready Reserve.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would authorize
members who enlist under this program the option of reenlisting
for continued service on active duty.

Improved benefits under the Army College First program (sec. 542)

The Senate bill contained a provision (sec. 531) that
would modify the Army College First program by extending the
period of delayed entry from two years to 30 months and
increasing the monthly allowance to the higher of $250 or the
amount of subsistence allowance for members of the Senior
Reserve Officers' Training Corps.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment that would
change the amount of the subsistence allowance to be the same
as the amount of the subsistence allowance provided to members
of the Senior Officers' Training Corps with the corresponding
number of years of participation.

Correction and extension of certain Army recruiting pilot program
authorities (sec. 543)

The Senate bill contained a provision (sec. 582) that
would extend certain Army recruiting pilot programs and, for
the pilot program involving contract recruiting initiatives,
require replacement of Army Reserve recruiters and remove the
requirement that contract recruiters operate under the military
recruiter chain of command.
The House amendment contained no similar provision.
The House recedes.

Military recruiter access to secondary school students (sec. 544)

The House amendment contained a provision (sec. 584) that
would specify that secondary schools shall provide directory
information to recruiters in the same way that such information
is provided to institutions of higher education when the
student has indicated a desire or intent to enroll in that
institution.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
local educational agencies receiving assistance under the
Elementary and Secondary Education Act of 1965 to provide to
military recruiters the same access to secondary school
students as is provided generally to postsecondary educational
institutions or to prospective employers and, upon request by
military recruiters, access to secondary school student names,
addresses, and telephone listings unless the parent or student
has submitted a request that this information not be released
without prior written parental consent.

Permanent authority for use of military recruiting funds for certain
expenses at Department of Defense recruiting functions (sec.
545)

The House amendment contained a provision (sec. 583) that
would make permanent the authority for the secretaries of the
military departments to conduct social functions involving
recruit candidates and recruits awaiting active duty entry, and
other persons known to influence the career decisions of
recruitment-age youth.
The Senate bill contained no similar provision.
The Senate recedes.

Report on health and disability benefits for pre-accession training and
education programs (sec. 546)

The Senate bill contained a provision (sec. 589) that
would require the Secretary of Defense to conduct a review of
and report on the health and disability benefits available to
recruits and officer candidates engaged in training, education,
or other types of programs while not yet on active duty and to
cadets and midshipmen attending the service academies.
The House amendment contained a similar provision (sec.
592).
The House recedes with an amendment that would require
that the Secretary of Defense include in his report an analysis
of health and disability benefits administered by the
Department of Veterans Affairs and the Department of Labor
available to persons injured in training or education.

Subtitle F--Decorations, Awards, and Posthumous Commissions

Authority for award of the Medal of Honor to Humbert R. Versace, Jon E.
Swanson, and Ben L. Salomon for valor (sec. 551)
The Senate bill contained a provision (sec. 551) that
would waive statutory time limits and authorize the President
to award the Medal of Honor to Humbert R. Versace for valor
during the Vietnam War.
The House amendment contained a similar provision (sec.
541).
The House recedes with an amendment that would also waive
statutory time limits and authorize the President to award the
Medal of Honor to Jon E. Swanson for valor during the Vietnam
War and Ben L. Salomon for valor during World War II.
Review regarding award of Medal of Honor to certain Jewish American and
Hispanic American war veterans (sec. 552)
The House amendment contained a provision (sec. 542) that
would require the secretaries of the military departments to
review the service records of certain Jewish and Hispanic
veterans from World War II and later periods to determine if
the award of the Medal of Honor is appropriate and would waive
the statutory time limitations for award where the secretaries
determine that service records support the award of Medals of
Honor.
The Senate bill contained a similar provision requiring
review of the service records of Jewish American war veterans
(sec. 552).
The Senate recedes with a clarifying amendment.
Authority to issue duplicate Medals of Honor and to replace stolen
military decorations (sec. 553)
The House amendment contained a provision (sec. 543) that
would authorize the service secretaries to issue one duplicate
Medal of Honor to recipients for display purposes, and a
provision (sec. 544) that would clarify that the service
secretaries are authorized to replace stolen decorations.
The Senate bill contained a similar provision (sec. 553).
The Senate recedes with an amendment that would combine
the provisions.
Retroactive Medal of Honor special pension (sec. 554)
The Senate bill contained a provision (sec. 556) that
would entitle Robert R. Ingram to retroactive payment of the
Medal of Honor special pension.
The House amendment contained no similar provision.
The House recedes.
Waiver of time limitations for award of certain decorations to certain
persons (sec. 555)
The Senate bill contained a provision (sec. 554) that
would waive the statutory time limits for award of military
decorations to certain individuals who have been recommended by
the service secretaries for these awards.
The House amendment contained a similar provision (sec.
545).
The House recedes.
Sense of Congress on issuance of certain medals (sec. 556)
The Senate bill contained a provision (sec. 555) that
would express the sense of the Senate that the Secretary of
Defense should consider authorizing the issuance of the Korea
Defense Service Medal to persons who served in the armed forces
in or adjacent to the Republic of Korea between July 28, 1954,
and a date determined by the Secretary.
The House amendment contained a provision (sec. 546) that
would require the secretaries of the military departments to
issue the Korea Defense Service Medal.
The House amendment also contained a provision (sec. 547)
that would require the secretaries of the military departments
to issue a Cold War Service Medal to persons who served
honorably on active duty in the armed forces during the period
beginning on September 2, 1945, and ending on December 26,
1991.
The House amendment also contained a provision (sec. 548)
that would authorize participants in Operation Frequent Wind to
return the award of the Armed Forces Expeditionary Medal and to
receive the Vietnam Service Medal in its place.
The House recedes with an amendment that would
consolidate these provisions to express the sense of the
Congress that the Secretary of Defense should consider
authorizing the award of the Korea Defense Service Medal, the
Cold War Service Medal, and the Vietnam Service Medal to
persons in the categories described above.
The conferees believe that the decision of whether or not
to award campaign medals should be the prerogative of the
Secretary of Defense.
Sense of Congress on development of a more comprehensive, uniform
policy for the award of decorations to military and civilian
personnel of the Department of Defense (sec. 557)
The House amendment contained a provision (sec. 549) that
would commend the decision by the Department of Defense to
create a new award, a medal for the defense of freedom, to be
awarded to Department of Defense civilians who are killed or
wounded as a result of hostile action.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Posthumous Army commission in the grade of captain in the Chaplains
Corps to Ella E. Gibson for service as chaplain of the First
Wisconsin Heavy Artillery Regiment during the Civil War (sec.
558)
The House amendment contained a provision (sec. 586) that
would authorize and request the President to posthumously
appoint Ella E. Gibson to the grade of captain for her service
as a chaplain in the First Wisconsin Heavy Artillery Regiment
during the Civil War.
The Senate bill contained no similar provision.
The Senate recedes.

Subtitle G--Funeral Honors Duty

Participation of military retirees in funeral honors details (sec. 561)
The Senate bill contained a provision (sec. 562) that
would authorize military retirees to serve as members of
funeral honors details.
The House amendment contained a similar provision (sec.
651).
The House recedes with a clarifying amendment.
Funeral honors duty performed by reserve and guard members to be
treated as inactive-duty training for certain purposes (sec.
562)
The House amendment contained a provision (sec. 517) that
would authorize reserve and National Guard members performing
funeral honors duty the same rights, benefits, and protections
that would be provided members performing inactive-duty
training.
The Senate bill contained a similar provision (sec. 563).
The Senate recedes.
Use of military leave for funeral honors duty by reserve members and
National Guardsmen (sec. 563)
The House amendment contained a provision (sec. 519) that
would authorize federal employees who are members of the
reserve components to use military leave to perform funeral
honors duty.
The Senate bill contained a similar provision (sec. 564).
The Senate recedes.
Authority to provide appropriate articles of clothing as a civilian
uniform for civilians participating in funeral honor details
(sec. 564)
The House amendment contained a provision (sec. 593) that
would require the secretary of a military department to
provide, upon a showing of financial need, articles of clothing
as a civilian uniform for civilians participating in funeral
honor details for veterans.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would authorize
the secretaries to provide the articles of clothing.
The conferees are aware of the challenges the services
face in providing funeral honors details for all veterans'
funerals where a funeral honors detail is requested. The
conferees encourage the services to work closely with and
provide support to veterans organizations to increase their
participation in funeral honors details.

Subtitle H--Military Spouses and Family Members

Improved financial and other assistance to military spouses for job
training and education (sec. 571)
The House amendment contained a provision (sec. 561) that
would require the Secretary of Defense to examine existing
Department of Defense and other federal, state and non-
governmental programs with the objective of improving retention
of military personnel by increasing the employability of
military spouses and helping those spouses gain access to
financial and other assistance for training and education.
The Senate bill contained no similar provision.
The Senate recedes.
Persons authorized to be included in surveys of military families
regarding federal programs (sec. 572)
The Senate bill contained a provision (sec. 581) that
would authorize the Secretary of Defense to add family members
of retirees and surviving spouses to those who may be surveyed
to determine the effectiveness of federal programs relating to
military families and the need for new programs.
The House amendment contained a similar provision (sec.
562).
The House recedes with a clarifying amendment.
Clarification of treatment of classified information concerning persons
in a missing status (sec. 573)
The House amendment contained a provision (sec. 563) that
would amend section 1506 of title 10, United States Code, to
require the Secretary of Defense to maintain a separate file
available for review by next-of-kin that would provide notice
of the existence of classified information which may pertain to
one or more missing persons.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Transportation to annual meeting of next-of-kin of persons unaccounted
for from conflicts after World War II (sec. 574)
The House amendment contained a provision (sec. 564) that
would authorize the Secretary of Defense to provide
transportation for the next-of-kin of persons who are
unaccounted for from the Korean War, the Cold War, the Vietnam
War, and the Persian Gulf Conflict to an annual meeting
concerning ongoing efforts to resolve the fate of their missing
family member.
The Senate bill contained a similar provision (sec. 588).
The Senate recedes with a clarifying amendment.
Amendments to charter of Defense Task Force on Domestic Violence (sec.
575)
The House amendment contained a provision (sec. 565) that
would extend the original three-year authorization of the
Defense Task Force on Domestic Violence from October, 2002, to
April 24, 2003 and authorize reimbursement to be paid to task
force members who are not Department of Defense or federal
civilian employees.
The Senate bill contained a similar provision (sec. 587).
The Senate recedes.

Subtitle I--Military Justice and Legal Assistance Matters

Blood alcohol content limit for the offense under the Uniform Code of
Military Justice of drunken operation of a vehicle, aircraft,
or vessel (sec. 581)
The Senate bill contained a provision (sec. 583) that
would amend Article 111 of the Uniform Code of Military Justice
(10 U.S.C. 911) to lower the blood alcohol concentration
necessary to establish drunken operation of a motor vehicle,
aircraft, or vessel from 0.1 to 0.08 grams or more of alcohol
per 100 milliliters of blood or 0.08 per 210 liters of breath.
The House amendment contained no similar provision.
The House recedes with an amendment that would establish
the blood alcohol content limit as the limit under the law of
the state in which the conduct occurred. Where the military
installation is in more than one state, the Secretary would
select the blood alcohol limit of one of the states if the
states have different limits.
Requirement that courts-martial consist of not less than 12 members in
capital cases (sec. 582)
The House amendment contained a provision (sec. 571) that
would amend chapter 47 of title 10, United States Code, to
increase the minimum number of required court-martial members
to 12 in cases in which the death penalty may be adjudged as a
sentence.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would make this
provision effective for offenses committed after December 31,
2002.
The conferees understand that a similar proposal is
currently being reviewed by the Joint Service Committee on
Military Justice. The conferees expect the Secretary of Defense
to provide any comments the Secretary may have on such a
proposal to the Committees on Armed Services of the Senate and
the House of Representatives no later than March 1, 2002.
Acceptance of voluntary legal assistance for the civil affairs of
members and former members of the uniformed services and their
dependents (sec. 583)
The Senate bill contained a provision (sec. 586) that
would authorize the service secretaries to accept voluntary
legal services. The recommended provision would treat a
volunteer providing legal services the same as an attorney on
the legal staff within the Department of Defense for defense of
legal malpractice.
The House amendment contained a similar provision (sec.
574).
The House recedes.

Subtitle J--Other Matters

Congressional review period for change in ground combat exclusion
policy (sec. 591)
The House amendment contained a provision (sec. 591) that
would change to 60 days of continuous session of Congress the
congressional notification period required of the Secretary of
Defense before implementing revised policies concerning the
assignment of women to ground combat units or positions.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would change
the notification period to 30 days of continuous session of
Congress.
Per diem allowance for lengthy or numerous deployments (sec. 592)
The House amendment contained a provision (sec. 590) that
would expand the scope of the report by the Secretary of
Defense on the management of individual member deployments and
would require that high-deployment per diem be paid from
operations and maintenance accounts.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
The conferees note that the Secretary of Defense, using
the authority under section 991(d) of title 10, United States
Code, recently suspended the requirement for general or flag
officers to manage the deployment of certain members and the
accumulation of deployment days by individual members. This
suspension was justified, and, by delaying the actual payment
of high-deployment per diem to individual members, provides
additional time for the services to analyze its impact on
personnel and assignment policies. To ensure a smooth
transition upon termination of this suspension, the conferees
urge the Secretary of Defense to afford the services sufficient
time to initiate any necessary policy changes to optimize the
efficient deployment of military personnel.
The conferees are pleased that effective tracking systems
for individual tempo of operations are being developed in all
the services and that a robust dialogue within the Department
of Defense about the policy, based on facts, is in progress.
The Commandant of the Marine Corps and the Chief of Naval
Operations, in particular, have expressed concern about
potential adverse impact on sailors and Marines who volunteer
for extended sea duty and operational deployments. The
Secretary's timely report on the administration of section 991
of title 10, United States Code, due on March 31, 2002, will be
a key factor in determining the future course of the management
of deployments of service members.
Clarification of disability severance pay computation (sec. 593)
The House amendment contained a provision (sec. 507) that
would authorize disability severance pay to be computed based
on the grade to which a member would be promoted regardless of
the purpose of the physical examination that identifies the
disqualifying physical disability.
The Senate bill contained no similar provision.
The Senate recedes.
Transportation or storage of privately owned vehicles on change of
permanent station (sec. 594)
The Senate bill contained a provision (sec. 638) that
would authorize advance payment of vehicle storage costs in
commercial facilities and payment for shipping privately owned
vehicles between permanent duty stations in the continental
United States when it is more advantageous and cost effective
for the government.
The House amendment contained similar provisions (sec.
581 and 582).
The House recedes with a clarifying amendment.
Repeal of requirement for final Comptroller General report relating to
Army end strength allocations (sec. 595)
The House amendment contained a provision (sec. 585) that
would repeal the requirement for the final report by the
Comptroller General of the United States on the Total Army
Analysis process.
The Senate bill contained no similar provision.
The Senate recedes.
Continued Department of Defense administration of National Guard
Challenge Program and Department of Defense STARBASE Program
(sec. 596)
The House amendment contained a provision (sec. 587)
that, effective October 1, 2002, would eliminate the $62.5
million statutory limit on Department of Defense spending for
the National Guard Youth Challenge Program, and revise the
Department of Defense cost share for each state's program from
60 percent to 75 percent.
The Senate bill contained a provision (sec. 1061) that
would require the Secretary of Defense to conduct the National
Guard Challenge Program and the STARBASE Program.
The House recedes with an amendment that would eliminate
the $62.5 million statutory limit on Department of Defense
spending for the National Guard Youth Challenge Program, and
provide that the Secretary of Defense would remain the
executive agent to carry out the National Guard Challenge
Program and the STARBASE Program regardless of the source of
funds for the programs or any transfer of jurisdiction over the
programs within the Executive Branch.
The conferees believe that both the Challenge and
STARBASE programs are being effectively administered by the
Department of Defense, and do not mean to suggest by the
recommended amendments that either program should be
transferred from the DOD to another department of the Executive
Branch. Furthermore, the conferees believe that to effect such
a transfer would require amendments to current law. If such a
transfer were to be proposed and subsequently approved by
Congress, the conferees believe that the continuing involvement
of the Secretary of Defense would be essential to the long-term
effectiveness of both programs. The conferees intend to ensure
that the Department of Defense remains closely involved in the
conduct of both the STARBASE and Challenge programs.
Report on Defense Science Board recommendation on original appointments
in regular grades for academy graduates and certain other new
officers (sec. 597)
The House amendment contained a provision (sec. 502) that
would require that graduates of the service academies, Reserve
Officer Training Corps distinguished graduates, and
distinguished graduates of other officer commissioning
programs, such as officer candidate schools, be given an
initial appointment as an officer in the Regular Army, Navy,
Marine Corps and Air Force, as long as they meet the criteria
for such appointment.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to submit, within six months of
enactment of this Act, a report to the Committees on Armed
Services of the Senate and the House of Representatives on the
legislative and policy changes required to implement the
recommendation of the Defense Science Board that all officers
be given initial regular commissions.
Sense of Congress regarding the selection of officers for
recommendation for appointment as Commander, United States
Transportation Command (sec. 598)
The Senate bill contained a provision (sec. 903) that
would have expressed the sense of Congress that the Secretary
of Defense should give careful consideration to recommending an
officer from the Army or Marine Corps to serve as Commander,
U.S. Transportation Command.
The House amendment contained no similar provision.
The House recedes with an amendment that would express
the sense of Congress that, when deciding on the next officer
to be recommended for appointment as Commander, U.S.
Transportation Command, the Secretary of Defense should not
rely upon one service which has traditionally provided officers
to fill that position, but should select for such
recommendation the best qualified officer of the Army, Navy,
Air Force, or Marine Corps.

Legislative Provisions Not Adopted

Acceptance of fellowships, scholarships, or grants for legal education
of officers participating in the Funded Legal Education Program
The Senate bill contained a provision (sec. 533) that
would authorize an officer attending law school under the
Funded Legal Education Program to accept a scholarship from the
law school or other entity.
The House amendment contained no similar provision.
The Senate recedes.
Codification of requirement for regulations for delivery of military
personnel to civil authorities when charged with certain
offenses
The House amendment contained a provision (sec. 573) that
would codify the requirement for the Secretary of Defense to
prescribe regulations to provide for the delivery of a member
accused by a civil authority of parental kidnapping or a
similar offense to the appropriate civil authority for trial.
The Senate bill contained no similar provision.
The House recedes.
Expanded application of reserve special selection board
The House amendment contained a provision (sec. 512) that
would authorize the reserve special selection boards to
consider officers from below the promotion zone who were either
not considered for promotion because of administrative error,
or were considered but not selected for promotion because of
material error.
The Senate bill contained no similar provision.
The House recedes.
Members of the National Guard performing funeral honors duty while in
non-federal status
The House amendment contained a provision (sec. 518) that
would specify that National Guard members when serving on
funeral honors details shall be considered members of the armed
forces for the purpose of meeting requirements for the minimum
number of service members and service affiliation on a funeral
honors detail.
The Senate bill contained no similar provision.
The House recedes.
The conferees note that section 1491(b)(2) of title 10,
United States Code, requires that a funeral honors detail for a
deceased veteran include at least two members of the armed
forces, at least one of whom is a member of the veteran's armed
force. Members of the Army National Guard of the United States
and the Air National Guard of the United States are members of
the armed forces even when performing in a state status. They
can participate in a funeral honors detail in either a state or
federal status, and should be considered as one of the required
members of the armed forces.
One-year extension of expiration date for certain force management
authorities
The House amendment contained a provision (sec. 509) that
would extend through December 31, 2002, certain force drawdown
transition authorities.
The Senate bill contained no similar provision.
The House recedes.
Preparation for, participation in, and conduct of athletic competitions
by the National Guard and members of the National Guard
The House amendment contained a provision (sec. 520) that
would authorize members and units of the National Guard to
conduct and compete in qualifying athletic competitions and
small arms competitions, and to use appropriated funds and
National Guard facilities and equipment in connection with the
conduct of or participation in these competitions.
The Senate bill contained no similar provision.
The House recedes.
Right of convicted accused to request sentencing by military judge
The House amendment contained a provision (sec. 572) that
would permit an accused who had been convicted by a court-
martial with service members to elect to have the sentencing
phase of the trial conducted by the military judge sitting
alone, rather than by the members.
The Senate bill contained no similar provision.
The House recedes.
The conferees are aware that this issue has been
submitted to the Joint Service Committee on Military Justice
for review. The conferees direct that the Secretary of Defense
report the results of this review to the Committees on Armed
Services of the Senate and the House of Representatives no
later than March 1, 2002.

Title VI--Compensation and Other Personnel Benefits

Items of Special Interest

Personal and family financial management programs
The conferees are concerned that the secretaries of the
military departments are not providing service members
sufficient training on the management of personal and family
finances, including matters relating to the purchase and
financing of automobiles and the use of payday-lender services.
The conferees are also concerned that when personal financial
problems do occur, the secretaries are not providing adequate
supervision to ensure that service members and their families
regain financial security.
Accordingly, the conferees direct the secretaries of the
military departments to conduct a comprehensive examination of
the personal financial management programs operated within
their respective departments. The examination shall include, at
a minimum: an assessment of the severity and type of personal
financial challenges confronting service members; the magnitude
of personal debt accumulated by service members; the adequacy
of training and assistance programs available to service
members; and the merits of other programs recommended to meet
the needs of service members.
The conferees further direct the Secretary of Defense to
consolidate and review the examinations conducted by the
secretaries of the military departments, identify the best
practices from each examination, and assess the need to improve
and standardize the programs operated by the secretaries of the
military departments. The conferees direct the Secretary of
Defense to report the findings of his review to the Committees
on Armed Services of the Senate and the House of
Representatives by March 31, 2002.

Legislative Provisions Adopted

Subtitle A--Pay and Allowances

Increase in basic pay for fiscal year 2002 (sec. 601)
The Senate bill contained a provision (sec. 601) that
would provide a targeted pay raise ranging from five percent to
10 percent, effective January 1, 2002.
The House amendment contained an identical provision
(sec. 601).
The conference agreement includes this provision.
Basic pay rate for certain reserve commissioned officers with prior
service as an enlisted member or warrant officer (sec. 602)
The Senate bill contained a provision (sec. 602) that
would authorize payment at the O-1E, O-2E or O-3E rate to
reserve component commissioned officers in the pay grade of O-
1, O-2, or O-3, who are not on active duty, but have
accumulated the equivalent of four years of active duty as a
warrant officer or enlisted member.
The House amendment contained a similar provision (sec.
602).
The House recedes with an amendment that would make this
provision effective on the date of enactment of this Act.
Reserve component compensation for distributed learning activities
performed as inactive-duty training (sec. 603)
The Senate bill contained a provision (sec. 603) that
would authorize compensation for members in grades E-6 and
below for distributed learning activities performed as
inactive-duty training.
The House amendment contained no similar provision.
The House recedes with an amendment that would authorize
compensation for members of the Selected Reserve upon
successful completion of a course of instruction using
electronic-based distributed learning technologies to
accomplish training requirements related to unit readiness or
mobilization.
Subsistence allowances (sec. 604)
The Senate bill contained provisions (sec. 604 and 606)
that would define the baseline for determining future rates for
basic allowance for subsistence and clarify that only members
with dependents are entitled to payment of the supplemental
subsistence allowance.
The House amendment contained a similar provision (sec.
603).
The House recedes with a clarifying amendment.
Eligibility for temporary housing allowance while in travel or leave
status between permanent duty stations (sec. 605)
The House amendment contained a provision (sec. 604) that
would require the secretaries of the military departments to
pay members of the uniformed services in pay grades below E-4
(with less than 4 years of service) a temporary housing
allowance while on travel or leave status between permanent
duty stations.
The Senate bill contained a similar provision (sec. 631).
The Senate recedes with a clarifying amendment.
Uniform allowance for officers (sec. 606)
The House amendment contained a provision (sec. 605) that
would clarify that an additional allowance of $200 for uniforms
may be paid to an officer so long as any previous allowance
received did not exceed $400.
The Senate bill contained a similar provision (sec. 607).
The Senate recedes.
Family separation allowance for members electing unaccompanied tour by
reason of health limitations of dependents (sec. 607)
The House amendment contained a provision (sec. 606) that
would require the secretaries of the military departments to
pay family separation allowance to members of the uniformed
services who elect to serve unaccompanied tours of duty because
the movement of dependents of the member to the permanent duty
station is denied for certified medical reasons.
The Senate bill contained a similar provision (sec. 636).
The Senate recedes with a clarifying amendment.

Subtitle B--Bonuses and Special Incentive Pays

One-year extension of certain bonus and special pay authorities for
reserve forces (sec. 611)
The House amendment contained a provision (sec. 611) that
would extend, until December 31, 2002, the authority to pay the
special pay for critically short wartime health care
specialists in the Selected Reserve, the Selected Reserve re-
enlistment bonus, the Selected Reserve enlistment bonus, the
special pay for enlisted members assigned to certain high
priority units in the Selected Reserve, the Selected Reserve
affiliation bonus, the Ready Reserve enlistment and re-
enlistment bonus, and the prior service enlistment bonus, and
would extend, until January 1, 2003, the authority for the
repayment of education loans for certain health professionals
who serve in the Selected Reserve.
The Senate bill contained a similar provision (sec. 611).
The Senate recedes.
One-year extension of certain bonus and special pay authorities for
nurse officer candidates, registered nurses, and nurse
anesthetists (sec. 612)
The House amendment contained a provision (sec. 612) that
would extend the authority for the nurse officer candidate
accession program, the accession bonus for registered nurses,
and the incentive special pay for nurse anesthetists until
December 31, 2002.
The Senate bill contained a similar provision (sec. 612).
The Senate recedes.
One-year extension of special pay and bonus authorities (sec. 613-614)
The Senate bill contained two provisions that would
extend until December 31, 2002 certain bonus and special pay
authorities. The first provision (sec. 613) would extend the
authority for special pay for nuclear-qualified officers
extending their period of active service, the nuclear career
accession bonus, and the nuclear career annual incentive bonus.
The second provision (sec. 614) would extend the authority to
pay the aviation officer retention bonus, the reenlistment
bonus for active members, the bonus for enlistment for two or
more years, and the retention bonus for members with critical
skills.
The House amendment contained a similar provision (sec.
613).
The House recedes with a clarifying amendment.
Hazardous duty pay for members of maritime visit, board, search, and
seizure teams (sec. 615)
The House amendment contained a provision (sec. 615) that
would authorize members of the uniformed services to be paid
hazardous duty incentive pay for duties involving regular
participation as a member of a team conducting visit, board,
search, and seizure aboard vessels in support of maritime
interdiction operations.
The Senate bill contained a similar provision (sec. 615).
The Senate recedes with a clarifying amendment.
Eligibility for certain career continuation bonuses for early
commitment to remain on active duty (sec. 616)
The Senate bill contained a provision (sec. 621) that
would extend authority for payment of aviation career pay and
surface warfare continuation pay to eligible officers who, when
within one year of completing a service commitment, sign a
written agreement to remain on active duty.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Secretarial discretion in prescribing submarine duty incentive pay
rates (sec. 617)
The House amendment contained a provision (sec. 617) that
would authorize the Secretary of the Navy to prescribe the
amount of submarine duty incentive pay by grade and years of
service within a maximum of $1,000 per month.
The Senate bill contained a similar provision (sec. 616).
The Senate recedes with a clarifying amendment.
Conforming accession bonus for dental officers authority with
authorities for other special pay and bonuses (sec. 618)
The House amendment contained a provision (sec. 614) that
would extend the authority to pay accession bonuses to dental
officers until December 31, 2002.
The Senate bill contained no similar provision.
The Senate recedes.
Modification of eligibility requirements for Individual Ready Reserve
bonus for reenlistment, enlistment, or extension of enlistment
(sec. 619)
The Senate bill contained a provision (sec. 618) that
would modify existing provisions to authorize payment of a
bonus to individuals who possess a skill that is designated as
critically short to meet wartime requirements and who agree to
enlist, reenlist or voluntarily extend an enlistment in the
Individual Ready Reserve.
The House amendment contained a similar provision (sec.
618).
The House recedes with a clarifying amendment.
Installment payment authority for 15-year career status bonus (sec.
620)
The House amendment contained a provision (sec. 619) that
would authorize members of the uniformed services to elect to
be paid the 15-year career status bonus in a lump sum or in
annual installments.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Accession bonus for new officers in critical skills (sec. 621)
The House amendment contained a provision (sec. 620) that
would authorize the service secretaries to pay an accession
bonus of up to $100,000 to officer candidates who enter into
written service agreements to accept commissions as officers.
The Senate bill contained a similar provision (sec. 619).
The Senate recedes with a clarifying amendment that would
limit the maximum amount of the bonus to $60,000.
Education savings plan to encourage reenlistments and extensions of
service in critical specialities (sec. 622)
The Senate bill contained a provision (sec. 661) that
would authorize the Secretary of Defense to purchase U.S.
savings bonds with a face value of up to $30,000 for military
personnel who have completed specified periods of active duty
and enter into a commitment to perform at least six additional
years of active duty service in a specialty designated as
critical by the Secretary.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Continuation of payment of special and incentive pay at unreduced rates
during stop loss periods (sec. 623)
The conference agreement includes a provision that would
authorize the service secretaries to permit service members
involuntarily retained on active duty under stop loss authority
to continue to receive special and incentive pays at unreduced
rates.
Retroactive authorization for imminent danger pay for service in
connection with Operation Enduring Freedom (sec. 624)
The conference agreement includes a provision that would
authorize the Secretary of Defense to provide for retroactive
payment of imminent danger pay to service members who served in
specified areas in connection with Operation Enduring Freedom
for duty performed between September 19, 2001 and October 31,
2001.

Subtitle C--Travel and Transportation Allowances

Minimum per diem rate for travel and transportation allowance for
travel performed upon a change of permanent station and certain
other travel (sec. 631)
The House amendment contained a provision (sec. 631) that
would equate per diem rates for military members for travel
performed in connection with a change of permanent station and
per diem rates for official travel within the continental
United States of federal civilian employees and their
dependents.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Eligibility for payment of subsistence expenses associated with
occupancy of temporary lodging incident to reporting to first
permanent duty station (sec. 632)
The House amendment contained a provision (sec. 632) that
would authorize payment of subsistence expenses to officers
making their first permanent change of station and would
increase from $110 to $180 per day the maximum amount that may
be paid to members of the uniformed services as reimbursement
for temporary lodging and subsistence expenses incurred in the
United States as a result of a permanent change of station.
The Senate bill contained a similar provision (sec. 632).
The Senate recedes with a clarifying amendment.
Reimbursement of members for mandatory pet quarantine fees for
household pets (sec. 633)
The House amendment contained a provision (sec. 634) that
would authorize an increase in the amount of reimbursement for
pet quarantine fees from $275 to $675 per change of station.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would increase
the amount to $550 per change of station.
Increased weight allowance for transportation of baggage and household
effects for junior enlisted members (sec. 634)
The House amendment contained a provision (sec. 633) that
would increase the maximum weight allowance for shipment of
household effects for enlisted military members in grades E-4
and below.
The Senate bill contained no similar provision.
The Senate recedes.
Eligibility of additional members for dislocation allowance (sec. 635)
The Senate bill contained a provision (sec. 633) that
would authorize payment of a dislocation allowance to a member
when the member's dependents make an authorized move in
connection with the member's move to the first duty station.
The provision would also authorize payment of a single
dislocation allowance to married service members, where both
husband and wife are members without dependents, when both move
to a new duty station and occupy government family quarters.
The House amendment contained similar provisions (sec.
635 and 636).
The House recedes with a clarifying amendment.
Partial dislocation allowance authorized for housing moves ordered for
government convenience (sec. 636)
The House amendment contained a provision (sec. 637) that
would authorize the service secretaries to pay a $500 partial
dislocation allowance to members of the uniformed services who
are ordered to occupy or vacate government family housing to
permit privatization or renovation, or for another reason
unrelated to changes in permanent station.
The Senate bill contained a similar provision (sec. 634).
The Senate recedes with an amendment that would make this
provision effective for moves for which the order to move is
issued on or after the date of enactment of this Act.
Allowances for travel performed in connection with members taking
authorized leave between consecutive overseas tours (sec. 637)
The House amendment contained a provision (sec. 638) that
would authorize the service secretaries to designate the
locations to which members of the uniformed services may travel
at government expense while on leave between consecutive
overseas tours.
The Senate bill contained no similar provision.
The Senate recedes.
Travel and transportation allowances for family members to attend
burial of a deceased member of the uniformed services (sec.
638)
The Senate bill contained a provision (sec. 635) that
would authorize allowances for family members and others to
attend burial ceremonies of deceased members of the uniformed
forces who die while on active duty or inactive duty.
The House amendment contained no similar provision.
The House recedes with an amendment that would
grandfather the benefit level authorized for surviving families
of service members who died during the Vietnam era.
Funded student travel for foreign study under an education program
approved by a United States school (sec. 639)
The Senate bill contained a provision (sec. 637) that
would extend the authority to pay funded student travel to
certain dependents of members who are stationed outside the
continental United States.
The House amendment contained a similar provision (sec.
639).
The House recedes with a clarifying amendment.

Subtitle D--Retirement and Survivor Benefit Matters

Contingent authority for concurrent receipt of military retired pay and
veterans' disability compensation and enhancement of special
compensation authority (sec. 641)
The House amendment contained a provision (sec. 641) that
would authorize members of the uniformed services who are
qualified for retirement to receive Department of Veterans
Affairs disability compensation without a reduction in retired
pay if the President proposes and the Congress enacts
legislation that would offset the ``PayGo''costs of this
initiative.
The Senate bill contained a provision (sec. 651) that
would authorize retired members of the armed forces who have a
service-connected-disability to receive military retired pay
concurrently with veterans' disability compensation.
The Senate recedes with an amendment that would:
authorize payment of special compensation for retirees with
service-connected-disabilities rated at 60 percent in fiscal
year 2002; increase the amount of special compensation for
retirees with disabilities rated at 80 percent or higher in
fiscal year 2003; and increase the amount of special
compensation for retirees with disabilities rated at 70 percent
or higher in fiscal year 2005.
Survivor Benefit Plan annuities for surviving spouses of members who
die while on active duty and not eligible for retirement (sec.
642)
The Senate bill contained a provision (sec. 652) that
would authorize Survivor Benefit Plan (SPB) benefits for
surviving spouses of service members who are not eligible for
retirement and who die in the line of duty while on active
duty.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
The conferees are concerned about the current
inconsistent practice involving expedited approval of physical
disability retirement when death of a service member is
imminent and the service member is unable to elect SBP options.
In many cases, the services authorize benefits greater than
those chosen by most retirees who elect to participate in the
Survivor Benefit Plan. The conferees direct the Secretary of
Defense to issue regulations by July 1, 2002, governing
imminent death retirements.

Subtitle E--Other Matters

Payment for unused leave in excess of 60 days accrued by members of
reserve components on active duty for one year or less (sec.
651)
The Senate bill contained a provision (sec. 608) that
would authorize payment for accrued leave in excess of the
current limit of 60 days to certain members of the reserve
components.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Additional authority to provide assistance for families of members of
the armed forces (sec. 652)
The Senate bill contained two provisions regarding
assistance to families of members of the armed forces. One
provision (sec. 681) would authorize the Secretary of Defense
to provide assistance to families of members of the armed
forces serving on active duty during fiscal year 2002 in order
to ensure that the children of such families obtain needed
child care and youth services. Another provision (sec. 682)
would authorize the Secretary of Defense to provide family
education and support services to families of members of the
armed services to the same extent that these services were
provided during the Persian Gulf War.
The House amendment contained no similar provision.
The House recedes with an amendment that would combine
these provisions.
The conferees' intent is to ensure that the Secretary of
Defense has authority to provide the types of family support
services provided during the Persian Gulf War.
The conferees recognize that families of deployed members
may need expanded family support services, such as crisis
intervention, family counseling, family support groups, respite
care, and transportation assistance. The conferees encourage
the Secretary to expand family support programs associated with
military installations and to establish family support centers
in other communities that have large populations of families of
deployed members. In overseas areas, the Secretary is
encouraged to take all reasonable precautions to ensure the
safety of children during transportation to and from Department
of Defense schools. The conferees also encourage the Secretary
to accelerate the completion and dissemination of the High
Stress Parenting Materials currently under development through
an agreement with the Department of Agriculture.
The conferees are particularly concerned that families of
National Guard and Reserve members who are geographically
separated from military installations have services comparable
to those provided at active duty installations. These services
should be available at rates comparable to rates paid by
families using military child care and youth programs.
Providing affordable child care and youth services to these
families may require cooperative agreements between the
military and other government or community-based organizations,
as well as non-governmental organizations.
Authorization of transitional compensation and commissary and exchange
benefits for dependents of commissioned officers of the Public
Health Service and the National Oceanic and Atmospheric
Administration who are separated for dependent abuse (sec. 653)
The Senate bill contained a provision (sec. 663) that
would authorize transitional benefits for the dependents of
commissioned officers of the Public Health Service and the
National Oceanic and Atmospheric Administration separated for
dependent abuse.
The House amendment contained no similar provision.
The House recedes.
Transfer of entitlement to educational assistance under Montgomery GI
Bill by members of the Armed Forces with critical military
skills (sec. 654)
The Senate bill contained a provision (sec. 539) that
would authorize the service secretaries to permit certain
service members with critical military skills to transfer up to
18 months of unused basic Montgomery GI Bill benefits to family
members.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.

Legislative Provisions Not Adopted

Career sea pay
The Senate bill contained a provision (sec. 617) that
would ensure receipt of career sea pay by all military members,
regardless of rank, pay grade, or accrued time in service, if
they are assigned to qualifying sea duty.
The House amendment contained no similar provision.
The Senate recedes.
The conferees are pleased that the Navy has recently
approved new enhanced sea pay rates and prescribed career sea
pay to all sailors on sea duty, including those in pay grades
E-1, E-2, and E-3. The conferees expect advance notice of any
change in policy that would exclude members of any pay grade
from receiving career sea pay who are otherwise eligible.
Equal treatment of reservists performing inactive-duty training for
receipt of aviation career incentive pay
The House amendment contained a provision (sec. 616) that
would entitle qualified reserve aviators to be paid the full
amount of monthly Aviation Career Incentive Pay in the same
amount as paid to active duty aviators with the same number of
years of aviation service.
The Senate bill contained no similar provision.
The House recedes.
Increase in basic allowance for housing in the United States
The Senate bill contained a provision (sec. 605) that
would accelerate the current five-year plan to eliminate out-
of-pocket housing expenses by two years, increasing the Basic
Allowance for Housing so that, after September 30, 2002, it
would not be less than the median cost of adequate housing for
members in that grade and dependency status in that area.
The House amendment contained no similar provision.
The Senate recedes.
The conferees believe that service members should not be
required to pay out-of-pocket a percentage of their housing
costs when they are unable to live in government quarters. The
conferees support the plan to eliminate these out-of-pocket
expenses and strongly encourage the Secretary of Defense to
accelerate this plan.

Title VII--Health Care Provisions

Legislative Provisions Adopted

Subtitle A--Tricare Program Improvements

Sub-acute and long-term care program reform (sec. 701)
The House amendment contained a provision (sec. 704) that
would reform the Department of Defense Program for care
provided in skilled nursing facilities or at home.
The Senate bill contained several similar provisions
(sec. 701-705).
The Senate recedes with an amendment that would increase
the limit of the government's share of the cost for certain
covered benefits from $1000 to $2500 and require the use of
public facilities in some circumstances.
Prosthetics and hearing aids (sec. 702)
The Senate bill contained a provision (sec. 706) that
would authorize providing prosthetics and hearing aids to
military dependents.
The House amendment contained no similar provision.
The House recedes.
Durable medical equipment (sec. 703)
The Senate bill contained a provision (sec. 707) that
would expand the kinds of durable medical equipment that can be
provided to military dependents.
The House amendment contained no similar provision.
The House recedes.
Rehabilitative therapy (sec. 704)
The Senate bill contained a provision (sec. 708) that
would authorize providing rehabilitative therapy to military
dependents to improve, restore, or maintain function, or to
minimize or prevent deterioration of function, of a patient
when prescribed by a physician.
The House amendment contained no similar provision.
The House recedes.
Report on mental health benefits (sec. 705)
The Senate bill contained a provision (sec. 709) that
would require the Secretary of Defense to conduct a study to
determine the adequacy of the scope and availability of
outpatient mental health benefits provided for members of the
armed forces and covered beneficiaries under the TRICARE
program.
The House amendment contained no similar provision.
The House recedes.
Clarification of eligibility for reimbursement of travel expenses of
adult accompanying patient in travel for specialty care (sec.
706)
The Senate bill contained a provision (sec. 712) that
would clarify the eligibility for coverage of travel expenses
by a parent, guardian or family member while accompanying a
covered beneficiary referred for specialty care to be received
more than 100 miles from the location of primary care.
The House amendment contained a similar provision (sec.
705).
The House recedes.
TRICARE program limitations on payment rates for institutional health
care providers and on balance billing by institutional and
noninstitutional health care providers (sec. 707)
The Senate bill contained a provision (sec. 713) that
would reinforce and expedite reform of TRICARE payment methods.
The recommended provision would expedite adoption of Medicare's
prospective payments rates for nursing home care, outpatient
services, and durable medical equipment.
The House amendment contained a similar provision (sec.
701).
The House recedes with an amendment that would make the
effective date 90 days after the date of enactment.
Improvements in administration of the TRICARE program (sec. 708)
The House amendment contained a provision (sec. 703) that
would authorize the Secretary of Defense to enter into new
contracts for support of delivery of health care under TRICARE
by providing flexibility in the choice of contract vehicle and
to reduce the nine-month contract start-up time for certain
managed care support contractors.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment that would
authorize the flexibility in the choice for contract vehicle
during the one-year period after the date of enactment of this
Act.
The current legislative restrictions pertaining to health
care contracting were the result of considerable review and
oversight of the Defense Health Program by Congress. This
provision will provide the Department of Defense the ability to
employ the best contracting practices to improve TRICARE
contracts. The conferees wish to allow for review of any
proposed changes and careful evaluation prior to permanent
modification of legislation pertaining to the program, given
the significant impact on beneficiaries and potential cost
implications. It is the conferees' intent that any new
contacting practices employed by the Department under this
provision ensure a smooth transition for beneficiaries and
strengthen the integration of health care delivery.

Subtitle B--Senior Health Care

Clarifications and improvements regarding the Department of Defense
Medicare-Eligible Retiree Health Care Fund (sec. 711)
The House amendment contained a provision (sec. 715) that
would: authorize all uniformed services to participate in
TRICARE for Life; clarify that funding for the accrual fund
must come from funds available for the health care programs of
the participating uniformed services; clarify that Military
Treatment Facilities may receive payments from the accrual
fund; and limit the Department of Defense's annual cost
contribution to the accrual fund to an amount not to exceed
expected payments from the fund in a given year.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would authorize
all uniformed services to participate in TRICARE for Life,
clarify that funding for the accrual fund must come from funds
available for the health care programs of the participating
uniformed services, and clarify that Military Treatment
Facilities may receive payments from the accrual fund.

Subtitle C--Studies and Reports

Comptroller General study of health care coverage of members of the
reserve components of the Armed Forces and the National Guard
(sec. 721)
The Senate bill contained a provision (sec. 715) that
would require the Comptroller General of the United States to
conduct a study of the health care coverage of members of the
Selected Reserve and to report on cost effective options for
providing health care benefits to members of the Selected
Reserve and their families.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Comptroller General study of adequacy and quality of health care
provided to women under the Defense Health Program (sec. 722)
The Senate bill contained a provision (sec. 716) that
would require the Comptroller General of the United States to
conduct a study of the adequacy and quality of the health care
provided to women under the Defense Health Program.
The House amendment contained no similar provision.
The House recedes with an amendment that would change the
date to May 1, 2002, by which the Comptroller General must
report the results of the study to Congress.
Repeal of obsolete report requirement (sec. 723)
The House amendment contained a provision (sec. 714) that
would repeal a reporting requirement in the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 10
U.S.C. 1074g note) by striking subsection 701(d).
The Senate bill contained no similar provision.
The Senate recedes.
Comptroller General report on requirement to provide screenings,
physical examinations, and other care for certain members (sec.
724)
The Senate bill contained a provision (sec. 711) that
would repeal the requirement to provide certain medical and
dental services to members of the Selected Reserve of the Army
scheduled for deployment within 75 days after mobilization.
The House amendment contained no similar provision.
The House recedes with an amendment that would require
the Comptroller General to report on the advisability, need,
and cost effectiveness of providing these services.

Subtitle D--Other Matters

Prohibition against requiring military retirees to receive health care
solely through the Department of Defense (sec. 731)
The House amendment contained a provision (sec. 711) that
would prohibit the Secretary of Defense from implementing a
policy of forced choice enrollment by military retirees who are
eligible for care in the health care facilities and programs of
both the Department of Defense and the Department of Veterans
Affairs.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.
Fees for trauma and other medical care provided to civilians (sec. 732)
The House amendment contained a provision (sec. 712) that
would direct the Secretary of Defense to conduct a pilot
program under which the Brooke Army Medical Center and the
Wilford Hall Air Force Medical Center in San Antonio, Texas,
may charge civilians, who are not covered TRICARE
beneficiaries, fees representing the actual costs of trauma and
other medical care provided.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to implement procedures throughout the
military health care system to charge civilians who are not
covered TRICARE beneficiaries, or their insurers, fees
representing the costs of trauma and other medical care
provided to those civilians.
Enhancement of medical product development (sec. 733)
The House amendment contained a provision (sec. 713) that
would authorize the Secretary of Defense to waive the
prohibition against the use of human subjects in research in
order to advance research into the treatment of combat
casualties.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the research project to directly benefit the subject and to
comply with all other applicable laws and regulations.
The conferees intend that the Secretary of Defense would
be authorized to waive the requirement for informed consent for
research on human subjects only when: (1) the subjects are in a
life threatening situation; (2) obtaining informed consent is
not feasible; and (3) the research holds out the prospect of
direct benefit to the health of the subject. Furthermore, the
conferees intend that the research project and the waiver of
informed consent must comply with all other statutes and
implementing regulations governing human subjects' protection.
Pilot program providing for Department of Veterans Affairs support in
the performance of separation physical examinations (sec. 734)
The Senate bill contained a provision (sec. 717) that
would authorize the Secretary of Defense and the Secretary of
Veterans Affairs to carry out a pilot program in which the
Veterans Health Administration would conduct physical
examinations of members separating from the uniformed services.
The House amendment contained no similar provision.
The House recedes.
The conferees are aware that the Department of Veterans
Affairs is currently conducting a congressionally mandated
pilot program for the performance of the physical examinations
required in connection with the separation of members of the
uniformed services, as well as other disability evaluations.
Several software tools have been developed and
implemented and incorporated into the ongoing pilot program.
These software tools have resulted in a more streamlined,
efficient and accurate disability evaluation process. The
software creates the information needed by the Department of
Defense for the separating service member and concurrently
provides the Department of Veterans Affairs with the
information required to determine compensation benefits. This
eliminates the need for a second exam and standardizes a ``one
exam'' process while automatically providing the specific
information required by the Department of Defense and the
Department of Veterans Affairs on their own unique forms.
The conferees direct that, in order to insure consistency
in both pilot programs, the Department of Veterans Affairs
conduct the separation exams for the Department of Defense
utilizing the software developed and implemented in the ongoing
pilot program.
Modification of prohibition on requirement of nonavailability statement
or preauthorization (sec. 735)
The Senate bill contained a provision (sec. 718) that
would authorize the Secretary of Defense to waive the
prohibition against requiring statements of nonavailability for
authorized health care services, other than mental health
services, if certain conditions are met and both beneficiary
and congressional notification occurs, with a waiting period
prior to implementation. The nonavailability requirement
applies to those beneficiaries receiving care under TRICARE
Standard.
The House amendment contained a similar provision (sec.
702).
The House recedes with a clarifying amendment that would
preclude the Secretary of Defense from waiving the prohibition
against requiring nonavailability statements for maternity
care.
Transitional health care for members separated from active duty (sec.
736)
The Senate bill contained a provision (sec. 719) that
would make permanent the authority for transitional health care
benefits for members who are involuntarily separated from
active duty, members of reserve components who are separated
from active duty of more than 30 days in support of a
contingency operation, and members separated from active duty
when involuntarily retained on active duty under section 12305
of title 10, United States Code.
The House amendment contained no similar provision.
The House recedes.
Two-year extension of health care management demonstration program
(sec. 737)
The Senate bill contained a provision (sec. 714) that
would extend, until December 31, 2003, the demonstration
program of simulation modeling to improve health care delivery
in the Defense Health Program authorized in section 733 of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001.
The House amendment contained no similar provision.
The House recedes.
Joint DOD-VA pilot program for providing graduate medical education and
training for physicians (sec. 738)
The Senate bill contained a provision (sec. 538) that
would authorize the Secretary of Defense and the Secretary of
Veterans Affairs to jointly carry out a pilot program of
graduate medical education and training for medical personnel
of the armed forces in Department of Veterans Affairs' medical
centers.
The House amendment contained no similar provision.
The House recedes with an amendment that would include
the authority to provide graduate medical education and
training of physician employees of the Department of Veterans
Affairs as part of the pilot program.

Legislative Provisions Not Adopted

Effective date
The Senate bill contained a provision (sec. 710) that
would make the TRICARE Benefits Modernization provisions
effective on October 1, 2001.
The House amendment contained no similar provision.
The Senate recedes.

Title VIII--Acquisition Policy, Acquisition Management, and Related
Matters

Items of Special Interest

Management reform initiatives
The Secretary of Defense has testified that the
Department of Defense (DOD) should be able to achieve five
percent savings throughout the Department through management
improvements. These savings goals are consistent with analysis
presented in numerous governmental and advisory commission
reports in past years. For example, in November 2000 the
General Accounting Office (GAO) reported that ``[m]ost DOD
contracting officers included in our review did not follow the
General Services Administration's established procedures
intended to ensure fair and reasonable prices when using the
Federal Supply Schedule.'' The GAO also found, in its January
2001 assessment of performance and accountability in the DOD,
that ``a number of the Department's key business processes are
inefficient and ineffective,'' including acquisition processes
that are ``still too slow and costly'' and systems deficiencies
that ``significantly contribute to improper payments.'' In
addition, the DOD Inspector General, in an August 2001 report,
stated that the DOD is ``not obtaining the benefits of
sustained competition and reduced costs'' that are permitted
under current law. The Business Executives for National
Security (BENS) Tail-to-Tooth Commission also stated in its
October 1997 report that ``billions continue to be wasted on
inefficient business practices.'' Based on these and other
reports, and the Secretary's commitment to improvements in this
area, the conferees believe that the Department should be able
to achieve significant savings in fiscal year 2002 through more
efficient management; reform of business processes; improved
processes for the procurement of property and services; and
increased use of best business practices adopted from the
private sector.
Titles I, II and III of the conference report include
reductions totaling $1.3 billion, to be achieved through
management reform initiatives. The conferees expect the
Department of Defense to achieve these savings by implementing
the requirements of Title VIII, and by pursuing other
management efficiencies developed by the Department's Business
Initiative Council. The conferees expect the Department to
distribute these reductions across budget activities and
programs within the relevant appropriations accounts, based on
the dollar value of contracts within those budget activities
and programs to which improvements may be appropriately
applied.

Legislative Provisions Adopted

Subtitle A--Procurement Management and Administration

Management of procurement of services (sec. 801)
The Senate bill contained a provision (sec. 801) that
would improve the Department of Defense's management of the
acquisition of services by requiring the Department to: (1)
Establish a management structure for purchases of services; (2)
collect and analyze data on purchases of services; and (3)
establish a program review process for major purchases of
services.
The House amendment contained no similar provision.
The House recedes with an amendment that would: (1)
Ensure that the management structure for the procurement of
services shall be comparable to the management structure
already in place for the procurement of products; (2) clarify
that officials designated to exercise responsibility for the
management of the procurement of services may delegate their
authority in accordance with criteria established by the
Department; and (3) delete redundant requirements and
streamline the reporting requirements in the provision.
Savings goals for procurements of services (sec. 802)
The Senate bill contained a provision (sec. 802) that
would establish savings goals for the Department of Defense to
achieve through the use of improved management practices for
procurements of services, including performance-based services
contracting; competition for task orders under services
contracts; and program review, spending analyses, and other
best practices commonly used in the commercial sector.
The House amendment contained no similar provision.
The House recedes with an amendment deleting the
requirement for a report by the Comptroller General. The
conferees note that this provision directs the Department to
achieve savings through improved management practices. It is
not intended to require the Department to reduce needed support
services provided by contractors.
Competition requirement for purchase of services pursuant to multiple
award contracts (sec. 803)
The Senate bill contained a provision (sec. 803) that
would require that purchases of products and services in excess
of $50,000 awarded under a multiple award contract shall be
made on a competitive basis, subject to limited exceptions.
The House amendment contained no similar provision.
The House recedes with an amendment that would: (1) apply
the competition requirement only to purchases of services; (2)
raise the threshold for the competition requirement to
$100,000; (3) require that notice to offerors include a
description of the work to be performed and the basis on which
the selection will be made; and (4) clarify the manner in which
the provision would apply to purchases pursuant to the multiple
award schedules administered by the Administrator for General
Services (GSA schedules). Under the conference agreement,
notice could be provided to fewer than all contractors under
the GSA schedules, provided that: (1) notice is provided to as
many contractors as practicable; and (2) offers are received
from at least three qualified contractors or a contracting
officer of the Department of Defense determines in writing that
he or she was unable to identify additional qualified
contractors despite making a reasonable effort to do so.
Reports on maturity of technology at initiation of Major Defense
Acquisition Programs (sec. 804)
The Senate bill contained a provision (sec. 804) that
would require that critical technologies be successfully
demonstrated in a relevant environment before they may be
incorporated into a major defense acquisition program.
The House amendment contained no similar provision.
The House recedes with an amendment that would substitute
an annual report, in calendar years 2003 through 2006, on the
compliance of the Department of Defense (DOD) with the
technological maturity requirement established in DOD
Instruction 5000.2. Paragraph 4.7.3.2.2.2 of that Instruction
states in relevant part:

Technology must have been demonstrated in a
relevant environment * * * or, preferably, in an
operational environment * * * to be considered mature
enough to use for product development in systems
integration. If technology is not mature, the DOD
Component shall use alternative technology that is
mature and that can meet the user's needs.

The report required by the conference agreement would identify
and explain any circumstance in which the DOD fails to comply
with this requirement with regard to a Major Defense
Acquisition Program.

Subtitle B--Use of Preferred Sources

Applicability of competition requirements to purchases from a required
source (sec. 811)
The Senate bill contained a provision (sec. 821) that
would require Federal Prison Industries (FPI) to compete for
future Department of Defense contracts.
The House amendment contained no similar provision.
The House recedes. Under this provision, the Department
of Defense, not Federal Prison Industries, will be responsible
for determining whether Federal Prison Industries can best meet
the Department's needs in terms of price, quality, and time of
delivery. If the Department determines that the FPI product is
not the best available in terms of price, quality, and time of
delivery, the Department is directed to purchase the product on
a competitive basis.
Extension of mentor-protege program (sec. 812)
The Senate bill contained a provision (sec. 823) that
would codify the pilot mentor-protege program of the Department
of Defense and authorize the program in permanent law.
The House amendment contained no similar provision.
The House recedes with an amendment that would extend the
program for three years, through September 30, 2005.
Increase of assistance limitation regarding Procurement Technical
Assistance Program (sec. 813)
The House amendment contained a provision (sec. 806) that
would increase the assistance limitation for the Procurement
Technical Assistance Program under section 2414 of title 10,
United States Code from $300,000 to $600,000.
The Senate bill contained no similar provision.
The Senate recedes. The conferees believe that the
Procurement Technical Assistance Program provides valuable
support to both state-wide and local centers across the
country. The conferees expect the Department of Defense to
continue to implement the program in a broad-based manner that
supports a variety of both state-wide and local centers.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Related Matters

Amendments to conform with administrative changes in acquisition phase
and milestone terminology and to make related adjustments in
certain requirements applicable at milestone transition points
(sec. 821)
The Senate bill contained a provision (sec. 831) that
would make a series of modifications to title 10, United States
Code, and related statutes, to substitute references to the
acquisition milestones established by revised Department of
Defense Instruction 5000.2 for obsolete references currently
contained in those statutes.
The House amendment contained a similar provision (sec.
801).
The House recedes with a technical amendment.
Follow-on production contracts for products developed pursuant to
prototype projects (sec. 822)
The Senate bill contained a provision (sec. 805) that
would authorize the Department of Defense to enter follow-on
production contracts for a limited number of items developed
pursuant to transactions (other than contracts, grants, or
cooperative agreements) on a sole-source basis.
The House amendment contained no similar provision.
The House recedes.
One-year extension of program applying simplified procedures to certain
commercial items (sec. 823)
The House amendment contained a provision (sec. 803) that
would extend the test program authorized by section 4202 of the
Clinger-Cohen Act of 1996 (Divisions D and E of Public Law 104-
106; 110 Stat 654) until January 1, 2004.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would extend
the program until January 1, 2003.
Acquisition workforce qualifications (sec. 824)
The Senate bill contained a provision (sec. 813) that
would clarify the applicability of the acquisition workforce
qualifications in section 1724 of title 10, United States Code
and authorize the Secretary of Defense to establish a
contracting workforce to deploy in support of contingency
operations.
The House amendment contained a similar provision (sec.
802) that would also authorize the Secretary to establish a
developmental workforce.
The Senate recedes with an amendment that would clarify
that individuals serving in developmental positions may be
separated from the civil service if, after a three-year
probationary period, they do not meet the qualification
requirements established in section 1724 for members of the
acquisition workforce.
Report on implementation of recommendations of the Acquisition 2005
Task Force (sec. 825)
The Senate bill contained a provision (sec. 811) that
would require the Secretary of Defense to report on the
implementation of the recommendations of the Department of
Defense Acquisition 2005 Task Force included in the report
entitled ``Shaping the Civilian Acquisition Workforce of the
Future.''
The House amendment contained no similar provision.
The House recedes.

Subtitle D--Other Matters

Identification of errors made by executive agencies in payments to
contractors and recovery of amounts erroneously paid (sec. 831)
The House amendment contained a series of provisions
(sec. 811-819) that would require executive agencies to conduct
a program to recover erroneously made payments.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would modify
the recovery audit provisions to: (1) modify requirements for
the disposition of recovered funds; (2) delete funding
requirements for the management improvement program; and (3)
delete a provision relating to liability for violation of
privacy requirements.
Codification and modification of provision of law known as the ``Berry
Amendment'' (sec. 832)
The House amendment contained a provision (sec. 805) that
would codify the requirements of the ``Berry Amendment''
enacted as section 9005 of the Department of Defense
Appropriations Act, 1993 (P.L. 102-396), and modify those
requirements to: (1) require advance congressional notification
of all waivers; (2) specifically include parachutes on the list
of items covered; and (3) clarify that non-appropriated fund
entities are not covered.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would codify
the requirements of the ``Berry Amendment'' and clarify that
non-appropriated fund entities are not covered. The conferees
expect the Department to comply with a reasonable notification
request from the Armed Services Committee of the Senate or the
House of Representatives. The conferees also expect the
Department to ensure that no United States manufacturer can
provide the required item in a sufficient quality or quantity
before granting a waiver.
Personal services contracts to be performed by individuals or
organizations abroad (sec. 833)
The Senate bill contained a provision (sec. 1218) that
would amend section 2669 of title 22, United States Code, to
authorize the Secretary of State, upon the request of the
Secretary of Defense or the head of any other department or
agency of the United States, to enter into personal service
contracts with individuals to perform services in support of
the Department of Defense or such other department or agency.
The House amendment contained a provision (sec. 804) that
would authorize the Secretary of Defense to contract with
individuals or organizations to perform services in countries
with which the United States has no Status of Forces Agreement.
The House recedes.
Requirements regarding insensitive munitions (sec. 834)
The Senate bill contained a provision (sec. 833) that
would require the Secretary of Defense to have a program
ensuring that munitions are resistant to unplanned stimuli. The
provision also required a report to Congress, submitted with
the annual budget request. The report would identify all
waivers, and the reasons for such decisions, granted under
insensitive munitions regulations, as well as all funding for
insensitive munitions programs in the current budget request.
The House amendment contained no similar provision.
The House recedes with an amendment that would clarify
the requirement for the Secretary of Defense to ensure that
munitions are made as insensitive as possible to unplanned
stimuli. It limits the report on waivers granted under
insensitive munitions regulations and on associated funding to
three years, from fiscal year 2003-2005.
Inapplicability of limitation to small purchases of miniature or
instrument ball or roller bearings under certain circumstances
(sec. 835)
The Senate bill contained a provision (sec. 832) that
would provide certain exceptions to the requirement in section
2534 of title 10, United States Code, to purchase ball and
roller bearings from domestic sources.
The House amendment contained no similar provision.
The House recedes with an amendment that would authorize
the Department of Defense (DOD) to make purchases of ball and
roller bearings from other than domestic sources without
obtaining a waiver under section 2534, provided that: (1) no
such purchase exceeds the micropurchase threshold of $2,500;
and (2) the cumulative total of such purchases does not exceed
$200,000 in any fiscal year. The DOD would be required to keep
track of such purchases to the extent necessary to ensure that
it remains in compliance with the annual limitation.
Temporary emergency procurement authority to facilitate the defense
against terrorism or biological or chemical attack (sec. 836)
The conference agreement includes a provision that would
provide temporary emergency procurement authority to assist the
Department of Defense in the defense against terrorism and
biological or chemical attack. The provision would provide the
following authorities in fiscal years 2002 and 2003: (1) an
increase of the micro-purchase threshold to $15,000 for
purchases of property and services that would facilitate the
defense against terrorism or biological or chemical attack
against the United States; (2) an increase of the simplified
acquisition threshold to $250,000 (inside the United States)
and to $500,000 (outside the United States) for contracts
awarded in support of a contingency operation or a humanitarian
or peacekeeping operation; and (3) authority to treat as
commercial items any biotechnology goods and services purchased
to facilitate the defense against terrorism or biological or
chemical attack. In addition, the provision would require the
Secretary of Defense to recommend any additional emergency
procurement authority that the Secretary determines is
necessary to support operations carried out to combat
terrorism.

Legislative Provisions Not Adopted

Consolidation of defense contracts
The Senate bill contained a provision (sec. 822) that
would prohibit the consolidation of contract requirements in
excess of $5.0 million absent a written determination that the
benefits of the acquisition strategy, including the
consolidated contract requirements, substantially exceed the
benefits of alternative contracting approaches that would
involve a lesser degree of consolidation.
The House amendment contained a provision (sec. 807) that
would require the Secretary of Defense to track consolidations
of contract requirements.
The conference report does not include either provision.
The conferees note that Section 15(p) of the Small
Business Act (15 U.S.C. Section 644(p)) requires the Small
Business Administration (SBA) to maintain certain data and
provide certain reports regarding bundled contracts. This
provision also states that the head of a contracting agency
shall assist the SBA by providing ``procurement information
collected through existing agency data collection sources.''
There is no requirement in Section 15(p) for the
Secretary of Defense to modify existing data collection
systems. The conferees direct the Secretary of Defense, when
complying with this provision, to ensure that the Department of
Defense does not modify existing data collection systems,
create new data collection systems, or collect information not
available in existing data collection systems to collect data
on the consolidation or bundling of contract requirements.
HUBzone small business concerns
The Senate bill contained a provision (sec. 824) that
would modify requirements relating to HUBZone small business
concerns.
The House amendment contained no similar provision.
The Senate recedes.
Small business procurement competition
The Senate bill contained a provision (sec. 1068) that
would address teaming arrangements among small businesses.
The House amendment contained no similar provision.
The Senate recedes.

Title IX--Department of Defense Organization and Management

Items of Special Interest

Organizational changes to the Office of the Secretary of Defense
The conferees considered a number of legislative
proposals made by the Secretary of Defense to change the
organizational structure of the Office of the Secretary of
Defense (OSD) to deal with terrorism, homeland defense, and
intelligence matters.
While the conferees acknowledge the importance of
aligning appropriate organizational resources to address these
matters, the conferees decided not to act at this time because
of the lack of specificity of the legislative requests and
supporting materials, including the insufficient explanation as
to how the proposed changes would fit into the existing
statutory structure. The conferees believe that any further
changes to the organizational structure of OSD must be made
within the context of a unified and consistent framework
addressing all elements within the Office.
To that end, the conferees urge the Secretary of Defense
to submit to the Committees on Armed Services of the Senate and
the House of Representatives a comprehensive plan that would
address the following issues related to the organization of the
office of the Secretary of Defense: the number and roles of the
under secretaries; the appropriate uses of deputy under
secretary and principal deputy under secretary positions; the
appropriate number and uses of assistant secretaries and their
relationship to other positions within the OSD; the consistency
of the requirement for Senate confirmation across positions;
and the most beneficial organizational structures for
increasingly important functions such as combating terrorism,
homeland security, and intelligence.

Legislative Provisions Adopted

Subtitle A--Duties and Functions of Department of Defense Officers

Deputy Under Secretary of Defense for Personnel and Readiness (sec.
901)
The Senate bill contained a provision (sec. 901) that
would establish a new position requiring Senate confirmation
within the Office of the Secretary of Defense (OSD) known as
the Deputy Under Secretary of Defense for Personnel and
Readiness. The provision would also reduce the number of
assistant secretaries of defense from nine to eight.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
The conferees note that the creation of a Deputy Under-
Secretary for Personnel and Readiness will bring the number of
deputy under secretaries within the OSD to nine, only four of
which require Senate confirmation. Further, there is no
consistent organizational approach to the responsibilities and
authorities of deputy under secretaries, assistant secretaries,
and directors of programmatic offices throughout the four under
secretariats within the OSD. The conferees are concerned with
this arrangement and have urged the Secretary of Defense
elsewhere in this report to submit a comprehensive plan to the
Committees on Armed Services of the Senate and the House of
Representatives on the optimal organizational structure for the
OSD.
Sense of Congress on functions of new Office of Force Transformation in
the Office of the Secretary of Defense (sec. 902)
The House amendment contained a provision (sec. 902) that
would express the sense of Congress that the Secretary of
Defense should consider the establishment of an Office of
Transformation within the Office of the Secretary of Defense to
advise the Secretary on the various aspects of force
transformation and would further express the sense of Congress
that the Secretary should consider providing funding adequate
for sponsoring selective prototyping efforts, wargames, and
studies and analysis and for appropriate staffing, as
recommended by the director of such an Office of
Transformation.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that reflects the
latest developments in the Department of Defense, including the
decision by the Secretary of Defense to establish an Office of
Transformation.
Suspension of reorganization of engineering and technical authority
policy within the Naval Sea Systems Command pending report to
congressional committees (sec. 903)
The Senate bill contained a provision (sec. 906) that
would delay the implementation of a Naval Sea Systems Command
(NAVSEA) reorganization of engineering and technical authority
policy until 60 days after the Secretary of the Navy provides a
report on the Navy's plans and justification for the proposed
realignment.
The House amendment contained no similar provision.
The House recedes with an amendment that would prohibit
the Secretary of the Navy from granting final approval for the
reorganization of engineering and technical authority policy
within NAVSEA until 45 days after the Secretary submits to the
congressional defense committees a report on the details of the
reorganization.

Subtitle B--Space Activities

Space Activities (secs. 911-915)
The Senate bill contained a series of provisions (sec.
911-916) that would address concerns about the Department of
Defense (DOD) management structure for space activities. The
provisions would provide the Secretary of Defense discretionary
authority to establish a new position of Under Secretary of
Defense for Space, Intelligence and Information; would
establish the duties of the position, including serving as the
Director of the National Reconnaissance Office; and would
require a report from the Secretary on the proposed
organization of that office. Upon establishment of the new
Under Secretary, the provisions would establish an additional
Assistant Secretary of Defense and require that two of the
total number of assistant secretaries would have as their
principle duties supervision of activities relating to space,
intelligence, and information. Both would report to the Under
Secretary of Defense for Space, Intelligence, and Information.
If the Secretary of Defense failed to exercise the authority to
establish the new Under Secretary position, he would be
required to submit a report describing the actions he had taken
to address the problems in the management and organization of
the Department of Defense for space activities that were
identified by the Commission to Assess United States National
Security Space Management and Organization (Space Commission).
The provisions would also require the Comptroller General to
assess the progress of the DOD in implementing the
recommendations of the Space Commission; designate the Air
Force as the executive agent for space; require the Secretary
of Defense to designate space as a major force program; require
that the officer commanding the Air Force Space Command have
the grade of general; establish a separate space career field;
and prohibit the commander of Air Force Space Command from
serving simultaneously as the Commander-in-Chief, U.S. Space
Command and the commander of the North American Air Defense
Command.
The House amendment contained a series of similar
provisions (secs. 1401-1408) that would provide discretionary
authority for the Secretary of Defense to take the following
actions: establish a new position of Under Secretary of Defense
for Space Information and Intelligence; establish two new
Assistant Secretaries of Defense to serve under the new Under
Secretary of Defense; assign the Secretary of the Air Force to
be the executive agent of the Department of Defense for
planning and execution of space acquisition programs, projects
and activities; establish a major force program for the space
programs of the Department of Defense; and require that the
officer serving as the commander of Air Force Space Command not
serve simultaneously as the commander of the North American Air
Defense Command or the Commander-in-Chief, U. S. Space Command.
The House amendment also included provisions that: would
provide discretionary authority to the Secretary of the Air
Force to establish a separate space career field and to
designate the Under Secretary of the Air Force as the
acquisition executive of the Air Force for Department of
Defense space programs; and would require an assessment by the
Comptroller General of the actions taken by the Secretary of
Defense to implement the recommendations contained in the
report of the Commission to Assess United States National
Security Space Management and Organization. The House amendment
also included a provision to clarify that nothing in the
foregoing provisions changed the responsibilities of the
Director of Central Intelligence.
The conferees recognize that the importance of space
programs, projects and activities in support of military
activities continues to grow. In the interest of improving the
efficiency and effectiveness of U.S. military operations, the
conferees agree to a provision (sec. 912) that would require
the Secretary of the Air Force to establish and implement
policies and procedures to develop a space career field.
The conferees agree to a provision (sec. 913) that would
require the Secretary of Defense to submit a report on steps
taken to improve management, organization and oversight of
space programs, space activities, and funding and personnel
resources.
The conferees agree to a provision (sec. 911) that would
require the Secretary of Defense to take appropriate actions to
ensure that space development and acquisition programs are
carried out through joint program offices and, to the maximum
extent practicable, ensure that officers of the Army, Navy,
Marine Corps, and Air Force are assigned to and hold leadership
positions in such joint program offices. This section would
also direct the Secretary to designate positions in the Office
of the National Security Space Architect as joint duty
assignments as appropriate.
The conferees have also included a provision (sec. 914)
that requires the Comptroller General to assess the actions
taken by the Secretary of Defense to implement the
recommendations contained in the Space Commission report.
The conferees also express their view in section 902 that
the best qualified officer from any service should be appointed
as Commander-in-Chief, U.S. Space Command, and that the
appointee be a four-star general or flag officer position.
Both the House and Senate provisions were motivated by a
desire to encourage the implementation of the recommendations
of the Space Commission, which concluded that the Department of
Defense is not adequately organized or focused to meet U.S.
national security space needs.
One of the central reforms recommended by the Space
Commission was the establishment of a new Under Secretary of
Defense for Space, Intelligence, and Information to provide
high-level attention and guidance to space programs. This
recommendation is not included in the provisions in this
conference report primarily because the Secretary of Defense
has indicated that he is in the process of implementing the
recommendations of the Space Commission and that such a
provision would interfere with his freedom to manage the DOD.
The conferees, however, do not agree that these provisions
would reduce the Secretary's freedom to manage the Department,
as the provisions were intended to provide him additional
flexibility. The conferees understand, however, that the
Secretary has stated his intent not to exercise this authority
if it is provided to him.
The conferees also note that the Secretary has stated his
intent to designate the Secretary of the Air Force as the
executive agent for DOD space programs. The conferees remain
concerned that the continuing absence of a coherent, senior-
level focus for space programs within the Office of the
Secretary of Defense and the concentration of authority and
resources for space programs in the Air Force may not be
sufficient to resolve the space management and organizational
challenges identified by the Space Commission and may
inadvertently be a source of new problems. The conferees will
carefully review the reports required in sections 913 and 914
and will consider whether there is a need in the future for
additional organization and management reforms.
Noting that the Space Commission also concluded that the
depth of experience and technical expertise in space operations
and technology has suffered over the past decade, the conferees
believe establishing a space career field in the Air Force that
includes development and operation of space systems and
development of space doctrine and operational concepts is key
to sustaining U.S. leadership in space. The Chief of Staff of
the Air Force recently stated that ``space * * * is a separate
culture * * * different than what airmen experience in the air
* * * We have to respect that, and we have to grow and nurture
that culture until it matures.''
The conferees are encouraged by the progress made by the
Air Force in this direction to date, but believe that the
detailed planning and implementation of a space career field
must be carefully monitored. The conferees recognize that the
commander of Air Force Space Command will be provided the
resources and assigned responsibility to organize, train, and
equip for Air Force space development, acquisition and
operations. Furthermore, consistent with the implementation
guidance issued by the Secretary of Defense on October 18,
2001, the conferees expect that the commander of Air Force
Space Command will be assigned appropriate responsibility for
managing the space career field.
The conferees further understand that the Secretary of
Defense has stated his intent to establish a ``virtual major
force program'' to provide better visibility and insight into
DOD funding for space programs and activities. The conferees
note that senior DOD officials have contended that establishing
a major force program (MFP) for space programs might have
serious unintended consequences, although no such consequences
have ever been described. The conferees recognize, however,
that a virtual MFP--the designation of funding for space
programs and activities without formally creating a space MFP--
could represent a more flexible approach. Therefore, the
conferees expect the virtual MFP for space to be included in
the Future Years Defense Program submitted with the 2003 fiscal
year budget request.
The conferees, in section 912 of this bill, provided
sufficient flexibility in general officer limits to ensure that
the commander of Air Force Space Command will serve in the
grade of general. The conferees also believe that the officer
in this position should not serve concurrently as commander of
the North American Air Defense Command or as Commander-in-
Chief, U.S. Space Command. The conferees understand that the
Secretary intends to implement these Space Commission
recommendations and will continue to monitor the Department's
actions in these matters.

Subtitle C--Reports

Revised requirement for Chairman of the Joint Chiefs of Staff to advise
Secretary of Defense on the assignment of roles and missions to
the armed forces (sec. 921)
The House amendment contained a provision (sec. 904) that
would repeal the requirement contained in section 153(b) of
title 10, United States Code, for the Chairman of the Joint
Chiefs of Staff to submit a review of the assignment of roles
and missions of the armed forces to the Secretary of Defense
every three years. The provision would also amend section 118
of title 10, United States Code, to require the Chairman to
conduct such a review as part of the Quadrennial Defense Review
(QDR) process and that the results of that review be included
in the Chairman's assessment of the QDR that is submitted to
Congress.
The Senate bill contained a similar provision (sec.
1023).
The Senate recedes with an amendment that also requires
the Chairman of the Joint Chiefs of Staff to submit to Congress
no later than one year after the date of the enactment of this
Act a separate assessment of the assignment of roles and
missions of the armed forces based upon the findings in the
2001 QDR issued by the Secretary of Defense on September 30,
2001.
Revised requirements for content of annual report on joint warfighting
experimentation (sec. 922)
The Senate bill contained a provision (sec. 905) that
would amend section 485 of title 10, United States Code, to
clarify some of the contents of the annual joint warfighting
report and require the inclusion of a specific assessment of
whether there is a need for a major force program, or some
other resource mechanism, for funding joint experimentation and
for funding the rapid development and acquisition of uniquely
joint warfighting technologies that have been empirically
demonstrated through such experimentation.
The House amendment contained no similar provision.
The House recedes with a technical amendment.
Repeal of requirement for one of three remaining required reports on
activities of Joint Requirements Oversight Council (sec. 923)
The House amendment contained a provision (sec. 905) that
would repeal section 916 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 that requires
the Chairman of the Joint Chiefs of Staff to submit a semi-
annual report to the Committees on Armed Services of the Senate
and House of Representatives on specific activities of the
Joint Requirements Oversight Council through March 1, 2003.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that repeals the
requirement for one of the three remaining reports and provides
for the March 1, 2003 report to cover all of the preceding
fiscal year.
Revised joint report on establishment of national collaborative
information analysis capability (sec. 924)
The House amendment contained a provision (sec. 903) that
would require the Secretary of Defense and the Director of
Central Intelligence to submit a revised report assessing
alternatives for the establishment of a national collaborative
information analysis capability. The provision would direct
that the revised report focus on only the range of architecture
alternatives that would involve the participation of all
federal agencies involved in the collection of intelligence.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
that the report identify legislative or regulatory changes that
would be needed in order to implement the preferred
architecture in the report.
The conferees note that the original provision in the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 included direction that the architectures
contemplated for the original report, and, by reference, this
revised report, should be consistent with requirements of the
Privacy Act of 1974, as amended.

Subtitle D--Other Matters

Conforming amendments relating to change of name of Military Airlift
Command to Air Mobility Command (sec. 931)
The Senate bill contained a provision (sec. 907) that
would change references in the United States Code to the former
Military Airlift Command to refer to the command by its current
designation as the Air Mobility Command.
The House amendment contained a similar provision (sec.
906).
The House recedes with an amendment that would clarify
that the changes would be made to current references to the
Military Airlift Command.
Organizational realignment for Navy Director for Expeditionary Warfare
(sec. 932)
The House amendment contained a provision (sec. 907) that
would amend section 5038(a) of title 10, United States Code,
with respect to the specific office of the Deputy Chief of
Naval Operations within which the Director for Expeditionary
Warfare shall be located.
The Senate bill contained a similar provision (sec. 904).
The Senate recedes.

Legislative Provisions Not Adopted

Reductions in acquisition and support workforce
The Senate bill contained a provision (sec. 812) that
would establish a moratorium on further cuts in the acquisition
workforce for three years.
The House amendment contained a provision (sec. 901) that
would mandate a reduction of 13,000 in the acquisition
workforce in fiscal year 2002.
The conference agreement does not include either
provision.
Responsibility of the Under Secretary of the Air Force for acquisition
of space launch vehicles and space launch services
The Senate bill contained a provision (sec. 902) that
would assign responsibility for the acquisition of space launch
vehicles and space launch services for the Department of
Defense and the National Reconnaissance Office (NRO) to the
Under Secretary of the Air Force.
The House amendment contained no similar provision.
The Senate recedes.
The conferees note that the Air Force has managed and
contracted for the acquisition of space launch vehicles and
services for both the Air Force and the NRO. This arrangement
has allowed the Air Force to achieve cost savings and
efficiencies of scale for both organizations. The conferees
continue to oppose proposals that would require the NRO to
manage and contract for its own launch vehicles and services.

Title X--General Provisions

Counter-Drug Activities
The budget request for drug interdiction and other
counter-drug activities of the Department of Defense (DOD) for
fiscal year 2002 totaled approximately $1.0 billion: $820.4
million in the central transfer account; $166.8 million in the
operating budgets of the military services for authorized
counter-drug operations; and $12.5 million in the military
construction account for infrastructure improvements at the
forward operating locations.
The conferees recommend the following fiscal year 2002
budget for the Department's central transfer account.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, CENTRAL TRANSFER ACCOUNT

[In millions of dollars; may not add due to rounding]

Fiscal Year 2002 Counter-drug Request......................... $820.381
Increases:
National Guard Support................................ 16.0
Operation Caper Focus................................. 4.0
Southwest Border Fence................................ 5.0
Decreases:
AWACs Tactical Operations Support..................... 2.5
Counter-drug Tanker Operations Support................ 1.0
E-2 Support........................................... 1.0
Peru Riverine Program................................. 5.0
Tracker Aircraft...................................... 2.0
Research, Development, Test & Evaluation.............. 4.0
Patrol Coastals....................................... 1.5
Tethered Aerostat Radar System........................ 8.0
Fiscal Year 2002 Counter-drug Funding......................... 820.381
National Guard counter-drug activities
The conferees agree to authorize an additional $16.0
million for the counter-drug activities of the National Guard,
including National Guard State Plans and the National Guard
Counter-drug Schools.
Operation Caper Focus
The conferees also agree to authorize an additional $4.0
million for Operation Caper Focus, an important initiative to
disrupt narcotics trafficking in the Eastern Pacific. To the
extent that assets become available, the conferees expect the
Secretary of Defense to make them available for Operation Caper
Focus.
Tethered Aerostat Radar System
The conferees direct that a higher priority be given to
operational availability of the Tethered Aerostat Radar System
than to its modernization.

Items of Special Interest

Automobile Safety Program
The conferees are concerned with the number of deaths and
serious injuries to military service members and Department of
Defense civilian employees due to automobile collisions and
strongly support innovative safety programs designed to
eliminate these accidents. The conferees understand that an
automobile safety program recently conducted at Fort Polk,
Louisiana is proving to be a sound and successful attempt at
accident reduction. The conferees recommend that the Secretary
of Defense consider an expansion of the program to assist in
achieving the Department's safe driving goals.

Legislative Provisions Adopted

Subtitle A--Financial Matters

Transfer authority (sec. 1001)
The Senate bill contained a provision (sec. 1001) that
would provide the reprogramming authority for the transfer of
authorized funds made available in Division A of this Act.
The House amendment contained an identical provision.
The conference agreement includes this provision.
Incorporation of classified annex (sec. 1002)
The House amendment contained a provision (sec. 1002)
that would incorporate the classified annex prepared by the
Committee on Armed Services into this Act.
The Senate bill contained no similar provision.
The Senate recedes with a technical amendment that would
provide that the classified annex prepared by the committee of
conference be incorporated into this Act.
Authorization of supplemental appropriations for fiscal year 2001 (sec.
1003)
The Senate bill contained a provision (sec. 1003) that
would authorize the supplemental appropriations enacted in the
Supplemental Appropriations Act, 2001 (Public Law 107-20) which
provided supplemental funding for Department of Defense
programs including increased health care costs, operating
expenses, and utility costs.
The House amendment contained no similar provision.
The House recedes.
United States contribution to NATO common-funded budgets in fiscal year
2002 (sec. 1004)
The Senate bill contained a provision (sec. 1004) that
would authorize the U.S. contribution to NATO common-funded
budgets for fiscal year 2002, including the use of unexpended
balances. The resolution of ratification for the Protocol to
the North Atlantic Treaty of 1949 on the Accession of Poland,
Hungary and the Czech Republic contained a provision (section
3(2)(c)(ii)) requiring a specific authorization for U.S.
payments to the common-funded budgets of NATO for each fiscal
year, beginning in fiscal year 1989, that payments exceed the
fiscal year 1998 total.
The House amendment contained no similar provision.
The House recedes.
Limitation on funds for Bosnia and Kosovo Peacekeeping Operations for
fiscal year 2002 (sec. 1005)
The House amendment contained a provision (sec. 1003)
that would limit the amount of funds authorized to be
appropriated for incremental costs of the armed forces for
peacekeeping operations in Bosnia and Kosovo in fiscal year
2002 to the amounts contained in the budget request: $1,315.6
million for Bosnia and $1,528.6 million for Kosovo. The
provision would authorize the President to waive the limitation
after submitting to Congress: (1) a written certification that
the waiver is necessary in the national security interests of
the United States and that the exercise of the waiver will not
adversely affect the readiness of U.S. military forces; (2) a
report setting forth the reasons for the waiver, to include a
discussion of the impact of U.S. military involvement in Balkan
peacekeeping operations on U.S. military readiness; and (3) a
supplemental appropriations request for the Department of
Defense for the additional fiscal year 2002 costs associated
with U.S. military participation in or support for peacekeeping
operations in Bosnia and Kosovo.
The Senate bill contained no similar provision.
The Senate recedes.
Maximum amount for National Foreign Intelligence Program (sec. 1006)
The conferees agree to include a provision that would
establish a ceiling for authorization for the National Foreign
Intelligence Program (NFIP) equal to the amounts requested by
the President in the budget request for fiscal year 2002. The
provision would allow this ceiling to be increased by any
amounts provided for the NFIP in the Emergency Terrorism
Response Supplemental Appropriations Act, 2001, and any fiscal
year 2002 supplemental appropriations bills.
Clarification of applicability of interest penalties for late payment
of interim payments due under contracts for services (sec.
1007)
The Senate bill contained a provision (sec. 1005) that
would clarify the effective date of section 1010 of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001.
The House amendment contained no similar provision.
The House recedes.
Reliability of Department of Defense financial statements (sec. 1008)
The Senate bill contained a provision (sec. 1006) that
would direct the Department of Defense (DOD) to identify in
advance financial statements that will be unreliable because of
the Department's flawed finance and accounting systems, and to
minimize the resources that are used to prepare and audit these
statements.
The House amendment contained no similar provision.
The House recedes with an amendment that would clarify
that the Comptroller of the Department of Defense is authorized
to make the determination which statements will be unreliable,
and adjust the deadline for making such a determination.
Financial Management Modernization Executive Committee and financial
feeder systems compliance process (sec. 1009)
The Senate bill contained a provision (sec. 1007) that
would require the Department of Defense to establish an
oversight council and a management process for implementing
changes identified in the congressionally-mandated financial
management improvement plans.
The House amendment contained no similar provision.
The House recedes with a technical amendment.
Authorization of funds for ballistic missile defense programs or
combating terrorism programs of the Department of Defense (sec.
1010)
The Senate bill contained a provision (sec. 1009) that
would authorize $1.3 billion, the amount by which the Senate
bill reduced funding for ballistic missile defense programs,
for whichever of the following purposes the President
determines to be in the national security interests of the
United States:
(1) research, development, test and evaluation of
ballistic missile defense programs; and
(2) activities for combating terrorism.
The House amendment contained a comparable provision
(sec. 1501) that would increase by $400.0 million the funding
for the following activities to combat terrorism: intelligence
programs, anti-terrorism initiatives, counter-terrorism
initiatives, and consequence management activities. The
provision included transfer authority and provided offsetting
reductions of $265.0 million for ballistic missile defense
activities, and $135.0 million for consulting services in the
Defense-Wide operation and maintenance account.
The House amendment also contained a provision (sec.
1502) that would require that funds transferred under the
authority of section 1501 be merged with and available for the
same period of time as the appropriations to which transferred.
The House recedes with an amendment that would authorize
the $1.3 billion for whichever of the following purposes the
President determines to be in the national security interests
of the United States:
(1) research, development, test and evaluation of
ballistic missile defense programs of the Ballistic
Missile Defense Organization; and
(2) activities of the Department of Defense for
combating terrorism.
The amendment would also require the Secretary of Defense
to report to the congressional defense committees on the
allocation of the funds pursuant to the President's
determination.

Subtitle B--Naval Vessels and Shipyards

Authority to transfer naval vessels to certain foreign countries (sec.
1011)
The Senate bill contained a provision (sec. 1216) that
would transfer to various countries:
(1) on a grant basis, one Oliver Hazard Perry-class
frigate and six Knox-class frigates; and
(2) on a sale basis, four Kidd-class destroyers and
two Oliver Hazard Perry-class frigates.
The provision would direct that, to the maximum extent
practicable, the President shall require, as a condition of
transfer, that repair and refurbishment associated with the
transfer be accomplished in a shipyard located in the United
States.
The authority under this provision would expire at the
end of the two-year period that begins on the date of enactment
of the National Defense Authorization Act for Fiscal Year 2002.
The House amendment contained no similar provision.
The House recedes with an amendment that would provide
authority for the President to waive lease payments for up to
one year for vessel transfers that:
(1) would be converted, under the provisions of
this Act, from a lease to a grant; and
(2) are among the grant transfers approved in this
Act.
Sale of Glomar Explorer to the lessee (sec. 1012)
The Senate bill and the House amendment did not contain
any provision relating to the current lease arrangement for the
vessel Glomar Explorer.
The conferees agree to include a provision that would
authorize the Secretary of the Navy, at his discretion, to sell
the Glomar Explorer (AG-193) to the current lessee. Any such
sale would have to be based on a price that represents a fair
and reasonable amount, as determined by the Secretary.
Leasing of Navy ships for University National Oceanographic Laboratory
System (sec. 1013)
The Senate bill contained a provision (sec. 1067) that
would modify section 2667, title 10, United States Code to
allow the Navy to renew the five-year leases for certain Navy
research vessels without recompeting them, as long as the
initial lease was awarded competitively.
The House amendment contained a similar provision (sec.
1047).
The conference agreement includes this provision.
Increase in limitations on administrative authority of the Navy to
settle admiralty claims (sec. 1014)
The House amendment contained a provision (sec. 1004)
that would increase the administrative authority of the Navy to
settle admiralty claims.
The Senate bill contained no similar provision.
The Senate recedes.

Subtitle C--Counter-Drug Activities

Extension and restatement of authority to provide Department of Defense
support for counter-drug activities of other governmental
agencies (sec. 1021)
The Senate bill contained a provision (sec. 331) that
would codify section 1004 of the National Defense Authorization
Act for Fiscal Year 1991, as amended, in title 10, United
States Code.
The House amendment contained no similar provision.
The House recedes with an amendment that restates section
1004 but does not codify it, makes it effective during fiscal
years 2002 through 2006, and makes several technical changes.
Extension of reporting requirement regarding Department of Defense
expenditures to support foreign counter-drug activities (sec.
1022)
The House amendment contained a provision (sec. 1021)
that would extend for an additional year the requirement in the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 that the Secretary of Defense report to the
congressional defense committees detailing the expenditure of
funds in direct or indirect support of the counter-drug
activities of foreign governments.
The Senate bill contained no similar provisions.
The Senate recedes.
Authority to transfer Tracker aircraft currently used by Armed Forces
for counter-drug purposes (sec. 1023)
The House amendment contained a provision (sec. 1022)
that would authorize the Secretary of Defense to transfer all
Tracker aircraft in the inventory of the Department of Defense
to the administrative jurisdiction and operational control of
another federal agency. The provision also provided that any
Tracker aircraft remaining in the inventory of the Department
of Defense after September 30, 2002 may not be used by the
armed forces for counter-drug purposes after that date.
The Senate bill contained no similar provision.
The Senate recedes.
Limitation on use of funds for operation of Tethered Aerostat Radar
System pending submission of required report (sec. 1024)
The House amendment contained a provision (sec. 1023)
that would authorize the Secretary of Defense to transfer to
the administrative jurisdiction and operational control of
another federal agency the Tethered Aerostat Radar System
(TARS) currently used by the armed forces in counter-drug
detection and monitoring. The provision also provided that if
the TARS is not transferred by September 30, 2002, it may not
be used by the armed forces for counter-drug purposes after
that date.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that provides that
not more than 50 percent of the funds available for fiscal year
2002 for operation of the TARS may be obligated or expended
until such time as the Secretary of Defense submits to Congress
the report on the status of the TARS required to be submitted
by the Secretary, in consultation with the Secretary of the
Treasury, by the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001. The conferees direct that the report
contain a new review of the requirements of the Department of
Defense and the Department of the Treasury, including the U.S.
Customs Service, and a new assessment of the value of the TARS
in the conduct of counter-drug detection and monitoring and
border security and air sovereignty operations in light of the
changed circumstances in the aftermath of the September 11,
2001 terrorist attacks.

Subtitle D--Strategic Forces

Repeal of limitation on retirement or dismantlement of strategic
nuclear delivery systems (sec. 1031)
The Senate bill contained a provision (sec. 1011) that
would repeal section 1302 of the National Defense Authorization
Act for Fiscal Year 1998, which prohibits the obligation or
expenditure of funds to retire or prepare to retire certain
strategic nuclear delivery systems until the START II Treaty
enters into force.
The House amendment contained a similar provision (sec.
1043) that would amend section 1302 to allow the retirement of
Peacekeeper Intercontinental Ballistic Missiles.
The House recedes.
Air Force bomber force structure (sec. 1032)
The Senate bill contained a provision (sec. 1012) that
would prevent the Department of Defense from retiring or
dismantling any of the 93 B-1B Lancer bombers in the Air
National Guard, or from transferring or reassigning any of
those aircraft, until 30 days after delivery of a series of
reports to the Armed Services Committees of the Senate and
House of Representatives, including: (1) the national security
strategy; (2) the Quadrennial Defense Review; (3) a report
detailing the analysis for any consolidation and force
structure reduction, along with Department plans for the
National Guard units currently flying B-1B bombers; and (4) the
revised Nuclear Posture Review. The provision would also
require the Comptroller General to conduct a study and submit a
Government Accounting Office (GAO) report on the proposed
consolidation and force structure reduction by January 31,
2002.
The House amendment contained a similar provision (sec.
1045) that would differ from the Senate position only in that
the GAO report would not be due until 180 days after the
Department's report of analysis of the consolidation and force
structure reduction.
The conferees agree to a provision that would greatly
streamline the reporting requirements. The provision would
prevent the obligation of funds for retiring, dismantling,
transferring, or reassigning any of the 93 B-1B bombers until
15 days after the Secretary of the Air Force submits a report
that provides details of the proposed consolidation, force
structure reduction, and plans for affected National Guard
units. This provision is not intended in any way to prevent the
initiation of planning activities for the execution of this
plan.
Additional element for revised nuclear posture review (sec. 1033)
The Senate bill contained a provision (sec. 1013) that
would amend section 1041 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 by adding a new
element to the nuclear posture review. The new element would
direct the Secretary of Defense to look at the possibility of
deactivating or dealerting nuclear warheads or delivery
systems.
The House amendment contained no similar provision.
The House recedes.
The conferees are aware that the concepts of dealerting
and early deactivation of nuclear weapons and systems have been
the subject of debate and discussion, and that there are a
range of views with respect to these critical issues. By adding
this additional requirement to the Nuclear Posture Review
(NPR), the conferees wish to have the benefit of a careful and
thorough review of these concepts in the broader context of the
NPR. Inclusion of this additional element is not intended by
the conferees to presuppose the outcome of this review.
Report on options for modernization and enhancement of missile wing
helicopter support (sec. 1034)
The Senate bill contained a provision (sec. 1073) that
would require the Secretary of Defense to submit a report, with
submission of the fiscal year 2003 budget request, that would
provide information on the Secretary's preferred option for
furnishing helicopter support for the Air Force
intercontinental ballistic missile wings. The provision
included certain options that should be considered, allowed
additional options to be considered, and included factors that
should be considered in the review process.
The House amendment contained no similar provision.
The House recedes with an amendment that would specify
that the report must be submitted not later than the date of
the submission of the fiscal year 2003 budget request.

Subtitle E--Other Department of Defense Provisions

Secretary of Defense recommendation on need for Department of Defense
review of proposed federal agency actions to consider possible
impact on national defense (sec. 1041)
The House amendment contained a provision (sec. 312) that
would require the Secretary of Defense to include a national
security impact statement in each environmental impact
statement or environmental assessment prepared in connection
with a Department of Defense action.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to submit to the President the
Secretary's recommendation as to whether there should be
established within the Executive Branch a defense impact review
process and to submit a copy of that recommendation to
Congress. For the purposes of this section, a defense impact
review process means a process that provides for review of
certain proposed actions of other federal agencies to identify
any reasonably foreseeable significant adverse impact of such a
proposed action on national defense.
Department of Defense reports to Congress to be accompanied by
electronic version upon request (sec. 1042)
The House amendment contained a provision (sec. 1031)
that would require that the Department of Defense submit copies
of reports to Congress in an electronic medium.
The Senate bill contained no similar provision.
The Senate recedes with an amendment providing that the
Department must provide electronic reports only upon request.
Department of Defense gift authorities (sec. 1043)
The House amendment contained a provision (sec. 1041)
that would clarify items that may be loaned or given under
section 7545 of title 10, United States Code. The House
amendment also contained a provision (sec. 354) addressing the
entities to which such items may be loaned or given.
The Senate bill contained no similar provision.
The Senate recedes with an amendment combining the two
provisions.
Acceleration of research, development, and production of medical
countermeasures for defense against biological warfare agents
(sec. 1044)
The Senate bill contained a provision (sec. 1025) that
would authorize the Secretary of Defense, subject to the
availability of authorized and appropriated funds for such
purpose, to design, construct and operate on an installation of
the Department of Defense a government-owned, contractor-
operated (GOCO) vaccine production facility. The provision
would also require the Secretary of Defense to develop a long-
range plan for the production and acquisition of vaccines to
defend against biological warfare agents, including an
evaluation of vaccine production options, and to report to the
congressional defense committees on that plan by February 1,
2002.
The House amendment contained no similar provision.
The House recedes with an amendment that would require
the Secretary of Defense to carry out an accelerated program of
research, development and production of medical countermeasures
to defend against the highest threat biological warfare agents.
In order to accomplish this objective, the conferees believe
that the Department of Defense should invest in multiple new
technologies for the prevention and treatment of anthrax and
should take advantage of ideas and candidate technologies from
the bio-tech industry. The conferees believe that the
Department should consider the following approaches in this
effort: understanding the germination process of anthrax spores
and the means to inhibit this process; identifying the
molecular behavior of the anthrax toxin and the means to
intervene against it at the cellular level; investigating
recombinant protein antigens and formulating new vaccines,
including multivalent vaccines that may be effective against
multiple strains of pathogens; investigating technologies to be
used as an adjunct to antibiotic treatment that may be more
effective in clearing pathogens from circulation; and
determining potential means for optimizing and extending
immunity in humans.
The amendment would also require a study by the National
Research Council and the Institute of Medicine of the review
and approval process for such medical countermeasures. Finally,
the amendment would provide discretion for the Defense
Department to use up to $10.0 million of available research and
development funds for the accelerated program.
The conferees note the importance to the Department of
Defense of producing and acquiring products needed to prevent
or mitigate the physiological effects of exposure to biological
warfare agents, including vaccines, decontamination
capabilities and therapeutic treatments. The Department of
Defense has made significant progress in this area, as
indicated in the July 2001 Annual Report to Congress on the
Department of Defense Chemical and Biological Defense Program.
However, the conferees believe that more needs to be done
to ensure the development and acquisition of needed products,
including the transition of developmental items through the
review and approval process, particularly vaccines and drugs.
The conferees urge the Department to expand its efforts to
acquire new technologies and products to defend against
biological warfare agents.
Chemical and biological protective equipment for military personnel and
civilian employees of the Department of Defense (sec. 1045)
The Senate bill contained a provision (sec. 1069) that
would require a report on the requirements of the Department of
Defense regarding chemical and biological protective equipment
for military personnel and civilian employees of the
Department. The provision would also express the sense of
Congress on possible sources of funding for such equipment.
The House amendment contained no similar provision.
The House recedes with an amendment that would include an
assessment of an appropriate level of protection for civilian
employees of the Department of Defense against chemical and
biological attack, and would eliminate the proposed sense of
Congress.
Sale of goods and services by Naval Magazine, Indian Island, Alaska
(sec. 1046)
The Senate bill contained a provision (sec. 1070) that
would allow the Secretary of the Navy to sell, on a
reimbursable basis, goods and services from Naval Magazine,
Indian Island, that are not available from other commercial
sources.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Report on procedures and guidelines for embarkation of civilian guests
on naval vessels for public affairs purposes (sec. 1047)
The Senate bill contained a provision (sec. 1072) that
would require the Secretary of the Navy to submit a plan to
Congress to ensure that the embarkation of civilian guests for
the purpose of furthering public awareness of the Navy and its
mission does not interfere with the operational readiness and
safe operation of Navy vessels. The plan would cover a number
of specific areas.
The House amendment contained no similar provision.
The House recedes with an amendment that requires the
Secretary of the Navy to submit a report to the Committees on
Armed Services of the Senate and the House of Representatives
setting forth the procedures and guidelines of the Navy for the
embarkation of civilian guests on naval vessels for public
affairs purposes and that modifies the specific areas to be
covered in the report.
Technical and clerical amendments (sec. 1048)
The House amendment contained a provision (sec. 1046)
making technical and clerical amendments to title 10, United
States Code, and related statutes.
The Senate bill contained no similar provision.
The Senate recedes.
Termination of referendum requirement regarding continuation of
military training on the island of Vieques, Puerto Rico, and
imposition of additional conditions on closure of training
range (sec. 1049)
The House amendment contained a provision (sec. 1042)
that would repeal the provisions contained in Title XV of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 that would require a referendum on the continuation
of military training on Vieques and authorize additional
economic assistance for Vieques in the event continued training
was approved by such referendum. The House amendment would
specify that the Secretary of the Navy could close the Vieques
range only if the Chief of Naval Operations and the Commandant
of the Marine Corps jointly certified that an alternative
training facility was available that provided an equivalent or
superior level of training at a single location.
The House amendment would also revise the provisions of
that Act transferring jurisdiction of the training range and
other lands on the eastern end of Vieques to the Secretary of
the Interior if training operations on Vieques were terminated,
and would instead require that the land be retained by the
Secretary of the Navy.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would give the
Secretary of the Navy the authority to close the Vieques Naval
Training Range if the Secretary certifies to the President and
Congress that an alternative training facility or facilities
that provide equivalent or superior training exist and are
available. The Secretary's certification would take into
account the views and recommendations of the Chief of Naval
Operations and the Commandant of the Marine Corps. If the
Secretary terminates training operations on Vieques, the lands
on the eastern end of the island would be transferred to the
jurisdiction of the Secretary of the Interior.
The conferees note the views of the administration on
this matter, as stated in a letter from the Deputy Secretary of
Defense on November 29, 2001:

Consistent with the commitments made by both the
President and Secretary England, the Navy remains
committed to identifying a suitable alternative and is
planning to discontinue training operations on the
island of Vieques in May of 2003, contingent upon the
identification and establishment of a suitable
alternative. However, until a suitable alternative is
established, Vieques remains an important element in
the training of our forces deploying to fight the war.

Subtitle F--Other Matters

Assistance for firefighters (sec. 1061)
The Senate bill contained a provision (sec. 1071) that
would increase the authorization of appropriations for federal
grants to state or local firefighters in section 33 of the
Federal Fire Prevention and Control Act of 1974, as added by
title XVII of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001, from $300.0 million to
$600.0 million in fiscal year 2002, and would extend and
increase the authorizations to $800.0 million in fiscal year
2003 and $1.0 billion in fiscal year 2004.
The House amendment contained a provision (sec. 1049)
that would name the program after the late Floyd D. Spence and
would state the sense of Congress that the grant program should
be reauthorized at increased funding levels.
The House recedes with an amendment that would increase
the authorization of appropriations for these grants to $900.0
million per year for fiscal years 2002, 2003 and 2004, clarify
that grants under this program would be available for training
and equipment to respond to terrorism or the use of weapons of
mass destruction, and specify that up to three percent of the
funds authorized for these grants could be used for
administration of the grant program by the Federal Emergency
Management Agency.
Extension of times for Commission on the Future of the United States
Aerospace Industry to report and to terminate (sec. 1062)
The Senate bill contained a provision (sec. 1026) that
would ensure that the Commission on the Future of the United
States Aerospace Industry has a full year to carry out its work
and to allow the commission 60 rather than 30 days to archive
documents and complete other activities after the submission of
its final report.
The House amendment contained a similar provision (sec.
1054).
The Senate recedes with a technical amendment.
Appropriations to Radiation Exposure Compensation Trust Fund (sec.
1063)
The Senate bill contained a provision (sec. 1066) that
would amend the Radiation Exposure Compensation Act to make
mandatory appropriations for fiscal years 2002 through 2011.
The House amendment contained no similar provision.
The House recedes.
Waiver of vehicle weight limits during periods of national emergency
(sec. 1064)
The Senate bill contained a provision (sec. 1076) that
would authorize the Secretary of Transportation, in
consultation with the Secretary of Defense, to waive certain
vehicle weight limits on specified portions of the Interstate
highway system during a period of national emergency.
The House amendment contained no similar provision.
The House recedes.
Repair, restoration, and preservation of Lafayette Escadrille Memorial,
Marnes-la-Coquette, France (sec. 1065)
The Senate bill contained a provision (sec. 333) that
would authorize the Secretary of the Air Force to make a grant
to the Lafayette Escadrille Memorial Foundation, Inc. of up to
$2.0 million for repair, restoration, and preservation of the
Lafayette Escadrille Memorial.
The House amendment contained a similar provision (sec.
1048) that contained findings regarding the volunteer aviators
who fought with the Lafayette Escadrille during World War I and
the state of the memorial, and that would express the sense of
Congress that funds should be provided to restore the memorial.
The House recedes with an amendment that would authorize
the Secretary of the Air Force to make the grant after he
submits a report on the contributions to the restoration made
by the government of France. The conferees also agree to
require an annual report on the use of the grant funds, to
require that the Foundation make their records available for
audit by the Air Force and the General Accounting Office, and
to require an engineering analysis of and report on the cost of
fully restoring the memorial. The additional cost of the
engineering analysis is not intended to reduce the amount of
the grant to the Foundation. The cost of both the grant and the
engineering analysis would be funded from the operation and
maintenance account of the Air Force.
The conferees do not intend this provision to establish a
precedent for federal funding of privately operated memorials.

Legislative Provisions Not Adopted

Action to promote national defense features program
The House amendment contained a provision (sec. 1053)
that would direct the Secretary of Defense to certify to the
Federal Maritime Commission restrictive trade practices for
cases in which vessels built, or to be built, under the
National Defense Features (NDF) program are involved.
The Senate bill contained no similar provision.
The House recedes.
The conferees agree the NDF program has the potential to
provide incentive for construction of commercial ships in the
U.S.
The strategic sealift NDF program provides compensation
for commercial ships that have Defense Department unique
alterations required for carrying defense cargo. The program
was intended to reduce the requirement for government-owned
ships by supplementing them, when required, with commercial
shipping capable of carrying Defense Department unique cargo
such as tanks, heavy vehicles, and ammunition.
The NDF program can only be successful if commercial ship
owners decide to build ships in U.S. shipyards based on the
potential for successful operations when not involved in
defense department operations.
Although it is not the responsibility of the Secretary of
Defense to monitor commercial shipping trade issues, it is
within the purview of the Secretary to assess and report to
Congress on the Defense Department's ability to provide the
required strategic sealift.
Thus, the Secretary is directed to notify Congress when
he determines that a strategic sealift deficiency exists, and
measures to correct such a deficiency are not being undertaken
because of the unwillingness of commercial ship owners to
participate in the NDF program.
Assignment of members to assist border patrol and control
The House amendment contained a provision (sec. 1024)
that would authorize the use of military personnel to assist
the Immigration and Naturalization Service and the Customs
Service in preventing the entry of terrorists, drug
traffickers, weapons of mass destruction, illegal narcotics and
related items into the United States.
The Senate bill contained no similar provision.
The House recedes.
In the wake of the events of September 11, the conferees
believe that a full review of the strategy, roles and
responsibilities of the Department of Defense in combating
terrorism is warranted. Therefore, the conferees direct
elsewhere in this report that the Secretary of Defense conduct
a study of the appropriate role of the Department with respect
to homeland security and report to Congress on such matters.
Authority to pay gratuity to members of the armed forces and civilian
employees of the United States for slave labor performed for
Japan during World War II
The Senate bill contained a provision (sec. 1064) that
would authorize the Secretary of Veterans Affairs to pay a
$20,000 gratuity to a veteran or civilian internee who: (1)
served in or with United States combat forces during World War
II; (2) was captured and held as a prisoner of war by Japan;
and (3) was required to perform slave labor for Japan.
The House amendment contained no similar provision.
The Senate recedes.
Contingent authorization of appropriations
The Senate bill contained a title (title XIII) making the
authorization of certain funds contingent upon future action by
the Congress.
The House amendment contained no similar provision.
The Senate recedes.
Demilitarization of significant military equipment
The Senate bill contained a provision (sec. 1062) that
would provide authority to ensure demilitarization of
significant military equipment formerly owned by the Department
of Defense (DOD).
The House amendment contained no similar provision.
The Senate recedes.
Information and recommendations on congressional reporting requirements
applicable to the Department of Defense
The Senate bill contained a provision (sec. 1021) that
would require the Secretary of Defense to identify recurring
reporting requirements in the Department of Defense (DOD) that
the Secretary believes to be unnecessary.
The House amendment contained no similar provision.
The Senate recedes.
Reductions in authorizations of appropriations for Department of
Defense for management efficiencies
The Senate bill contained a provision (sec. 1002) that
would have reduced the amounts authorized to be appropriated to
the Department of Defense for fiscal year 2002 by $1.6 billion
to reflect savings to be achieved through the implementation of
the provisions of title VIII of the Senate bill and other
management efficiencies.
The House amendment contained no similar provision.
The Senate recedes.
The conferees agreed to reductions of $1.3 billion for
management reform initiatives. These reductions are included in
titles I, II and III of this Act.
Release of restriction on use of certain vessels previously authorized
to be sold
The Senate bill contained a provision (sec. 1220) that
would relax certain restrictions placed on the sale of two
vessels authorized by section 3603(a) of the Strom Thurmond
National Defense Authorization Act for Fiscal Year 1999.
The House amendment contained no similar provision.
The Senate recedes.
Revision in types of excess naval vessels for which approval by law is
required for disposal to foreign nations
The House amendment contained a provision (sec. 1011)
that would amend subsection (a) of section 7307 of title 10 to
change the requirement for specific congressional approval of
disposal of vessels to foreign nations from ``naval vessels''
to ``combatant naval vessels.''
The Senate bill contained no similar provision.
The House recedes.
Revision of annual report to Congress on National Guard and reserve
component equipment
The House amendment contained a provision (sec. 1033)
that would revise the annual report to Congress on National
Guard and reserve component equipment.
The Senate bill contained no similar provision.
The House recedes.
Sense of the Senate that the Secretary of the Treasury should
immediately issue savings bonds, to be designated as ``Unity
Bonds''
The Senate bill contained a provision (sec. 1074) that
would express the sense of the Senate that the Secretary of the
Treasury should immediately issue savings bonds, to be
designated as ``Unity Bonds,'' in response to the terrorist
attacks against the United States on September 11, 2001.
The House amendment contained no similar provision.
The Senate recedes.
The decision not to include this provision in this
conference report does not reflect any change in the strong
support for the issuance of savings bonds in both Houses of
Congress, as expressed by the Senate when it approved this
provision and by the House of Representatives when it approved
H.R. 2899, the ``Freedom Bonds Act of 2001''.
Transfer of Vietnam-era F-4 to non-profit museum
The House amendment contained a provision (sec. 1044)
that would authorize the Secretary of the Air Force to convey a
surplus F-4 aircraft to the National Aviation Museum and
Foundation of Oklahoma.
The Senate bill contained no similar provision.
The House recedes.

Title XI--Civilian Personnel

Legislative Provisions Adopted

Subtitle A--Department of Defense Civilian Personnel

Personnel pay and qualifications authority for Department of Defense
Pentagon Reservation civilian law enforcement and security
force (sec. 1101)
The Senate bill contained a provision (sec. 1075) that
would authorize the Secretary of Defense to establish pay rates
for Pentagon civilian law enforcement and security personnel
that are comparable to other federal law enforcement and
security organizations within the vicinity of the Pentagon.
The House amendment contained no similar provision.
The House recedes.
Pilot program for payment of retraining expenses (sec. 1102)
The House amendment contained a provision (sec. 1102)
that would authorize the Department of Defense (DOD) to
establish a pilot program to pay retraining expenses for DOD
employees scheduled for involuntary separation.
The Senate bill contained a similar provision (sec.
1123).
The Senate recedes with a clarifying amendment.
Authority of civilian employees to act as notaries (sec. 1103)
The Senate bill contained a provision (sec. 584) that
would clarify the authority of civilian attorneys in military
legal assistance offices and certain civilian employees to
perform notarial acts.
The House amendment contained a similar provision (sec.
1109).
The House recedes.
Authority to appoint certain health care professionals in the excepted
service (sec. 1104)
The Senate bill contained a provision (sec. 1125) that
would authorize the Secretary of Defense to exempt certain
health care professionals from examination for appointment in
the competitive civil service.
The House amendment contained no similar provision.
The House recedes with an amendment that would authorize
the Secretary of Defense to appoint certain health care
professionals in the excepted service without regard to certain
provisions of chapter 33 of title 5, United States Code
regarding examination, certification, and appointment in the
civil service.

Subtitle B--Civilian Personnel Management Generally

Authority to provide hostile fire pay (sec. 1111)
The Senate bill contained a provision (sec. 622) that
would authorize hostile fire or imminent danger pay for
civilians.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment that
removes limitations to duty in the United States and duty in
specified areas of the Pentagon.
Payment of expenses to obtain professional credentials (sec. 1112)
The House amendment contained a provision (sec. 1103)
that would authorize federal agencies to pay for employee
credentials, professional licenses, and professional
certification.
The Senate bill contained a similar provision (sec.
1126).
The Senate recedes.
Parity in establishment of wage schedules and rates for prevailing rate
employees (sec. 1113)
The House amendment contained a provision (sec. 1110)
that would require the Department of Defense, when establishing
wage schedules and rates for prevailing wage employees, to
consider rates paid for comparable positions in private
industry in the nearest wage area that is most similar to the
wage area for which wage rates are being established when there
are insufficient positions in the local industry upon which to
establish wage schedules and rates.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment that would
make this provision effective on the first normal effective
date of the applicable wage survey adjustment occurring after
the enactment of this Act.
Modification of limitation on premium pay (sec. 1114)
The House amendment contained a provision (sec. 1107)
that would amend section 5547 of title 5, United States Code,
to change the period used for limiting the amount of overtime
pay an employee may earn from a biweekly to an annual basis,
permitting more flexibility in scheduling overtime across the
Federal Government.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would give
heads of agencies discretionary authority to use the calendar
year as the period for limiting the amount of overtime pay for
employees performing work that is critical to the mission of
the agency.
Participation of personnel in technical standards development
activities (sec. 1115)
The Senate bill contained a provision (sec. 1124) that
would authorize the use of appropriated funds for Department of
Defense personnel to participate in meetings to set technical
standards for products, manufacturing processes, and management
practices.
The House amendment contained no similar provision.
The House recedes.
Retention of travel promotional items (sec. 1116)
The Senate bill contained a provision (sec. 1065) that
would authorize federal employees of the Executive Branch,
members of the foreign service, military members, and their
family members to retain for personal use promotional items
received as a result of using travel or transportation services
paid for by the Executive Branch.
The House amendment contained no similar provision.
The House recedes with an amendment that would extend the
benefit to employees of the Judicial Branch and certain
employees of the Legislative Branch.
Applicability of certain laws to certain individuals assigned to work
in the Federal Government (sec. 1117)
The House amendment contained a provision (sec. 1106)
that would clarify that state and local government officials
detailed to work in federal agencies are subject to the same
standards of official conduct that apply to other federal
employees.
The Senate bill contained no similar provision.
The Senate recedes with a technical amendment.

Subtitle C--Intelligence Civilian Personnel

Authority to increase maximum number of positions in the Defense
Intelligence Senior Executive Service (sec. 1121)
The Senate bill contained a provision (sec. 1101) that
would authorize the Secretary of Defense to increase the number
of Defense Intelligence Senior Executive Service positions by
the number of Senior Intelligence Service positions eliminated
from the Central Intelligence Agency.
The House amendment contained no similar provision.
The House recedes with an amendment that would increase
the maximum number of positions in the Defense Intelligence
Senior Executive Service from 517 to 544.
The conferees intend that the increase of 27 Defense
Intelligence Senior Executive Service positions is to meet the
increased senior level requirements of the National Imagery and
Mapping Agency (NIMA) resulting from the transfer of
responsibilities from the Central Intelligence Agency to NIMA.

Subtitle D--Matters Relating to Retirement

Improved portability of retirement coverage for employees moving
between civil service employment and employment by
nonappropriated fund instrumentalities (sec. 1131)
The Senate bill contained a provision (sec. 1112) that
would remove the requirement that employees who transfer
between non-appropriated and appropriated fund employment
systems have five or more years of service in a system to elect
to continue in the Civil Service Retirement System, Federal
Employees Retirement System, or Non-appropriated Fund
Retirement System, as applicable.
The House amendment contained a similar provision (sec.
1104).
The House recedes.
Federal employment retirement credit for nonappropriated fund
instrumentality service (sec. 1132)
The Senate bill contained a provision (sec. 1111) that
would authorize federal employees the opportunity to elect to
receive either Civil Service Retirement System or Federal
Employees Retirement System credit for prior nonappropriated
fund service.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Modification of limitations on exercise of voluntary separation
incentive pay authority and voluntary early retirement
authority (sec. 1133)
The Senate bill contained a provision (sec. 1113) that
would authorize the Secretary of Defense, during fiscal year
2003, to use voluntary separation incentives and voluntary
early retirement authority for workforce restructuring to meet
mission needs, achieve strength reductions, correct skill
imbalances or reduce the number of high-grade, managerial, or
supervisory positions.
The House amendment contained no similar provision.
The House recedes with an amendment that would establish
a limit of 2000 employees in fiscal year 2002 and 6000
employees in fiscal year 2003 who could be separated under this
provision, and would provide that this provision may be
superceded by another provision of law taking effect after the
effective date of this Act.

Legislative Provisions Not Adopted

Continued applicability of certain civil service protections for
employees integrated into the National Imagery and Mapping
Agency from the Defense Mapping Agency
The Senate bill contained a provision (sec. 1102) that
would clarify that former Defense Mapping Agency personnel
transferred into the National Imagery and Mapping Agency
pursuant to the National Defense Authorization Act for Fiscal
Year 1997 retain certain civil service protections for as long
as they remain Department of Defense employees employed without
a break in service in the National Imagery and Mapping Agency.
The House amendment contained no similar provision.
The Senate recedes.
Removal of requirement that granting civil service compensatory time be
based on amount of irregular or occasional overtime work
The House amendment contained a provision (sec. 1105)
that would repeal the requirement that compensatory time only
be granted to federal employees if the overtime performed is
irregular or occasional.
The Senate bill contained no similar provision.
The House recedes.
Undergraduate training program for employees of the National Imagery
and Mapping Agency
The House amendment contained a provision (sec. 1101)
that would authorize the National Imagery and Mapping Agency to
establish an undergraduate training program to recruit
employees with critical skills.
The Senate bill contained no similar provision.
The House recedes.
Use of common occupational and health standards as a basis for
differential payments made as a consequence of exposure to
asbestos
The House amendment contained a provision (sec. 1108)
that would establish a common standard for payment of hazardous
duty differential pay for reason of exposure to asbestos for
prevailing rate and general schedule federal employees.
The Senate bill contained no similar provision.
The House recedes.
The conferees direct the Secretary of Defense to
coordinate with interested parties to develop an appropriate
standard for exposure to asbestos for prevailing rate and
general schedule federal employees, taking into account the
nature of the work and the increased likelihood of exposure to
asbestos of prevailing rate and general schedule federal
employees.

Title XII--Matters Relating to Other Nations

Legislative Provisions Adopted

Subtitle A--Matters Related to Arms Control and Monitoring

Clarification of authority to furnish nuclear test monitoring equipment
to foreign governments (sec. 1201)
The Senate bill contained a provision (sec. 1214) that
would amend section 1203 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 to clarify that
the Department of Defense has the authority to transfer title
of existing nuclear test monitoring equipment to foreign host
nation governments, and to inspect and maintain such equipment
to ensure that it continues to provide the data needed to
satisfy United States nuclear test monitoring requirements. The
provision would also redesignate the existing authority as
section 2565 of title 10, United States Code.
The House amendment contained a similar provision.
The House recedes with a technical amendment.
Limitation on funding for Joint Data Exchange Center in Moscow (sec.
1202)
The House amendment contained a provision (sec. 1204)
that would prohibit the Secretary of Defense from obligating or
expending any fiscal year 2002 funds for the Joint Data
Exchange Center (JDEC) in Moscow until 30 days after the
Secretary of Defense submits to the congressional defense
committees an agreement between the United States and Russia to
share the costs of the JDEC and to exempt U.S. government
personnel from liability under Russian laws for activities
associated with the JDEC.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would prohibit
50 percent of the funds available for the JDEC from being
obligated or expended until the agreement is submitted to the
congressional defense committees.
The conferees believe that the JDEC is an important
element of the increased cooperation between the United States
and Russia and urge the Secretary to complete the necessary
negotiations as quickly as possible.
Support of United Nations-sponsored efforts to inspect and monitor
Iraqi weapons activities (sec. 1203)
The House amendment contained a provision (sec. 1205)
that would extend the authority under section 1505 of the
Weapons of Mass Destruction Act of 1992 (section 5859a of title
22, United States Code) for the Department of Defense to expend
up to $15.0 million in fiscal year 2002 in support of United
Nations-sponsored inspection and monitoring efforts in Iraq.
The provision would also change the requirement for quarterly
reports by the Department of Defense to an annual report.
The Senate bill contained a provision (sec. 1211) that
would similarly extend the authority to expend $15.0 million in
support of the United Nations-sponsored inspection and
monitoring effort but did not change the requirement for
quarterly reports.
The House recedes.
Authority for employees of Federal Government contractors to accompany
chemical weapons inspection teams at government-owned
facilities (sec. 1204)
The Senate bill contained a provision (sec. 1215) that
would amend section 303(b)(2) and section 304(c) of the
Chemical Weapons Convention Implementation Act of 1998 (22
U.S.C. 6723(b)(2) and 6724(c)) to permit Federal Government
contractor personnel to participate in inspections of United
States Government-owned facilities conducted under that Act if
led by a Federal Government employee.
The House amendment contained a similar provision.
The Senate recedes with a technical amendment.
Plan for securing nuclear weapons, material, and expertise of the
states of the former Soviet Union (sec. 1205)
The House amendment contained a provision (sec. 1051)
that would direct the President to submit to Congress a plan
for cooperation with Russia to dispose of excess nuclear
materials and nuclear weapons, and to prevent the outflow of
Russian scientific expertise in the area of weapons of mass
destruction. The provision included specific plan elements and
required the President to consult with Russia and Congress in
developing the plan.
The Senate bill contained no similar provision.
The Senate recedes with an amendment.
The amendment expands the scope of the plan to include
the other states of the former Soviet Union and adds the
requirement that the plan include programs to assist Russia in
downsizing its nuclear weapons research and production complex.
In addition, the amendment requires the President to consider
establishing an interagency committee to coordinate and monitor
the nonproliferation efforts of the United States, to recommend
policy and budget options for the U.S. nonproliferation
program, and to encourage increased coordination with and
greater participation of international partners, including
efforts to increase international contributions for such
programs.
The conferees note that the administration has been
reviewing the current nonproliferation programs. The conferees
urge the administration to bring this review to a close, decide
on a path forward for these important programs, and implement a
coordinated government-wide nonproliferation strategy as soon
as possible. As President Bush stated in his November 13, 2001
joint statement with Russian President Putin: ``Our highest
priority is to keep terrorists from acquiring weapons of mass
destruction. Today we agreed that Russian and American experts
will work together to share information and expertise to
counter the threat from bioterrorism. We agreed that it is
urgent that we improve the physical protection and accounting
on nuclear materials and prevent illicit nuclear trafficking.''

Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

Acquisition of logistical support for security forces (sec. 1211)
The House amendment contained a provision (sec. 1202)
that would amend the Multinational Force and Observers (MFO)
Participation Resolution (Public Law 97-132) to authorize the
President to approve contracting out the logistical and
aviation support for the MFO mission currently performed by
U.S. soldiers. The provision would also provide that U.S.
sponsored contract support could be provided to the MFO mission
without reimbursement if the President determines that such
action enhances or supports the national security of the United
States.
The Senate bill contained an identical provision (sec.
1217).
The conference agreement includes this provision.
Extension of authority for international cooperative research and
development projects (sec. 1212)
The Senate bill contained a provision (sec 1212) that
would amend section 2350 of title 10, United States Code, to
expand the entities, to include friendly foreign countries,
with which the Department of Defense is authorized to enter
into cooperative research and development agreements.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment and an
amendment that requires the Secretary of Defense to submit a
report to Congress 30 days prior to implementation of any
proposed memorandum of understanding (or other formal
agreement) for cooperative research and development with a
country that is not a NATO member nation or a major non-NATO
ally.
Cooperative agreements with foreign countries and international
organizations for reciprocal use of test facilities (sec. 1213)
The Senate bill contained a provision (sec. 1213) that
would authorize the Secretary of Defense, with the concurrence
of the Secretary of State, to enter into a memorandum of
understanding with a foreign country or international
organization to provide for the testing, on a reciprocal basis,
of defense equipment. The provision would require the charging
of direct costs and would authorize the charging of indirect
costs, but only to the extent specified in the memorandum or
other agreement.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Sense of Congress on allied defense burdensharing (sec. 1214)
The Senate bill contained a provision (sec. 1219) that
would express the sense of the Senate that the efforts of the
President to increase burdensharing by allied and friendly
nations deserve strong support. The provision also expressed
the sense of the Senate that host nation support agreements
with those nations in which U.S. military personnel are
permanently assigned should be negotiated consistent with
section 1221(a)(1) of the National Defense Authorization Act
for Fiscal Year 1998, which sets forth a goal of obtaining
financial contributions from such host nations that amount to
75 percent of the nonpersonnel costs.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment and an
amendment that makes the provision a sense of Congress.

Subtitle C--Reports

Report on significant sales and transfers of military hardware,
expertise, and technology to the People's Republic of China
(sec. 1221)
The House amendment contained a provision (sec. 1203)
that would amend section 1202 of the National Defense
Authorization Act for Fiscal Year 2000. This amendment would
require the Secretary of Defense to submit, as part of the
existing report requirement, a one-time report to the Congress
no later than March 1, 2002 on the transfer of equipment,
expertise, and technology from the former Soviet states to the
People's Republic of China.
The Senate bill contained no such provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to report to Congress on significant
transfers of equipment, expertise and technology to the
People's Republic of China. The amendment would remove the
reference to the former states of the Soviet Union, and
modifies the reporting requirement.
Repeal of requirement for reporting to Congress on military deployments
to Haiti (sec. 1222)
The House amendment contained a provision (sec. 1206)
that would repeal the report required by section 1232 of the
National Defense Authorization Act for Fiscal Year 2000
concerning military deployments to Haiti.
The Senate bill contained no similar provision.
The Senate recedes.
Report by Comptroller General on provision of defense articles,
services, and military education and training to foreign
countries and international organizations (sec. 1223)
The House amendment contained a provision (sec. 1207)
that would require the Comptroller General of the United States
to study the benefits, costs, and readiness impact to the U.S.
Armed Forces with regard to defense articles, services, or
military education and training provided under the authority of
the Foreign Assistance Act of 1961 (Public Law 87-195 as
amended) or any similar provision of law. The provision would
require the Comptroller General to submit to Congress an
interim report no later than April 15, 2002, and a final report
by August 1, 2002, on the findings of the study.
The Senate bill contained no similar provision.
The Senate recedes.

Legislative Provisions Not Adopted

Limitation on number of military personnel in Colombia
The House amendment contained a provision (sec. 1208)
that would limit to 500 the number of U.S. military personnel
authorized to be on duty in the Republic of Colombia at any
time. The limit would not apply to military personnel deployed
to Colombia for the purpose of rescuing or retrieving U.S.
Government personnel, military personnel attached to the U.S.
Embassy, military personnel engaged in relief operations, or
nonoperational transient military personnel.
The Senate bill contained no similar provision.
The House recedes.

Title XIII--Cooperative Threat Reduction With States of the Former
Soviet Union

Legislative Provisions Adopted

Specification of Cooperative Threat Reduction programs and funds (sec.
1301)
The Senate bill contained a provision (sec. 1201) that
would define the Cooperative Threat Reduction (CTR) program,
define the CTR funds as those authorized to be appropriated in
section 301 of this conference report, and authorize the CTR
funds to be available for obligation for three fiscal years.
The House amendment contained an identical provision
(sec. 1301).
The conference agreement includes this provision.
Funding allocations (sec. 1302)
The Senate bill contained a provision (sec. 1202) that
would authorize $403.0 million, the amount included in the
budget request, for the Cooperative Threat Reduction (CTR)
programs. The provision would also establish the funding levels
for each of the program elements in the CTR program and provide
limited authority to vary the amounts for specific program
elements.
The House amendment contained a similar provision (sec.
1302).
The Senate recedes with a technical amendment.
The conferees include a provision that would authorize
$403.0 million for the CTR programs, specify the funding levels
for the component parts of the program, and provide limited
authority to vary the amounts for specific program elements.
The provision combines the amounts provided for chemical
weapons destruction activity in Russia into a single category.
The conferees have excluded nuclear weapons transportation
security from the funding limitation. The provision would also
remove the funding limitation for nuclear weapons
transportation security contained in section 1302 (c)(3) of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001.
Limitation on use of funds until submission of reports (sec. 1303)
The House amendment contained a provision (sec. 1303)
that would prohibit the obligation or expenditure of fiscal
year 2002 Cooperative Threat Reduction (CTR) program funds
until 30 days after submission of the reports required by
section 1308 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would prohibit
the Secretary of Defense from spending more than 50 percent of
the funds available for the CTR program for fiscal year 2002
until the Secretary submits the reports required by the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001.
Requirement to consider use of revenue generated by activities carried
out under Cooperative Threat Reduction programs (sec. 1304)
The House amendment contained a provision (sec. 1304)
that would require the Secretary of Defense to submit a report
describing plans to monitor the use of revenue generated by
Cooperative Threat Reduction (CTR) program activities in Russia
and Ukraine.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would direct
the Secretary of Defense to consider the revenue generated by
CTR program-related activities in Russia when carrying out the
CTR program.
Prohibition against use of funds for second wing of fissile material
storage facility (sec. 1305)
The House amendment contained a provision (sec. 1305)
that would prohibit the use of all Cooperative Threat Reduction
(CTR) program funds for construction of a second wing for the
fissile material storage facility in Mayak, Russia. The
provision would also cap the amount of funds spent on the first
wing of the facility at $412.6 million.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would prohibit
fiscal year 2002 CTR funds, and CTR funds previously authorized
and appropriated, from being used to construct a second wing of
the storage facility for fissile material storage in Mayak,
Russia. The conferees believe that if the Department of Defense
should decide in the future that a second wing of the facility
is needed, the Secretary should specifically request funds for
this purpose. The provisions would also clarify that the
spending cap on the Mayak facility would not apply to any
expenditures related to security.
Prohibition against use of funds for certain construction activities
(sec. 1306)
The House amendment contained a provision (sec. 1306)
that would prohibit the use of Cooperative Threat Reduction
(CTR) program funds from being used for construction or
refurbishment of fossil fuel energy plants in Russia.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would prohibit
the use of fiscal year 2002 funds from being used for
construction activities associated with the program with the
Russian government to eliminate the production of weapons grade
plutonium. The conferees direct the Secretary of Defense to use
the funds authorized in section 1302 to identify a workable
cooperative program and plan that would allow these reactors to
be shut down or to stop producing plutonium as quickly and as
inexpensively as possible. The plan should include specific
milestones and budgetary information for all construction,
manufacturing, and operational costs associated with the plan.
In formulating the approach, the Secretary should take into
consideration the ability of the Russian government and the
international community to contribute to this effort. The
conferees continue to support the goal of eliminating plutonium
production and urge the Secretary to request funds in the
future for this effort to support an agreed-upon program plan.
The conferees note that this program has been delayed by the
lack of an agreed-upon program plan for several years.
Reports on activities and assistance under Cooperative Threat Reduction
programs (sec. 1307)
The House amendment contained a provision (sec. 1307)
that would amend section 1308 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 to modify the
report on activities and assistance under Cooperative Threat
Reduction (CTR) programs.
The Senate bill contained no similar provision.
The Senate recedes.
Chemical weapons destruction (sec. 1308)
The Senate bill contained a provision (sec. 1203) that
would amend section 1305 of the National Defense Authorization
Act for Fiscal Year 2000 to establish a certification process
by the Secretary of Defense that must be completed before any
funds could be spent for construction of a chemical weapons
destruction facility at Shchuch'ye, Russia. The provision would
also provide authority for the President to waive the
prerequisite dealing with information provided by Russia about
its stockpile of chemical munitions. The provision also
required a commitment on the part of others to assist with the
costs related to the facility.
The House amendment contained a similar provision (sec.
1309) that would require preconditions but did not provide
authority to waive the one prerequisite and did not contain the
requirement for a commitment by others to assist with the
costs.
The Senate recedes with an amendment that would include
the requirement on cost contributions by others and would
clarify the requirements of the certification with respect to
the Russian disclosure of its chemical weapons. This
clarification will allow the certification to be made as soon
as the United States assesses that the disclosure by Russia is
accurate. The conferees believe that the certification, as
clarified, can be made promptly, and thus believe that the
waiver authority is not required. The conferees support this
important program and urge the Secretary to implement this
program as soon as possible.
Additional matter in annual report on activities and assistance under
Cooperative Threat Reduction programs (sec. 1309)
The Senate bill contained a provision (sec. 1205) that
would amend the annual report to include a new section
describing the amount of the annual commitment from the
international community and from Russia for the chemical
weapons destruction facility at Shchuch'ye.
The House amendment contained no similar provision.
The House recedes.

Legislative Provisions Not Adopted

Report on responsibility for carrying out Cooperative Threat Reduction
programs
The House amendment contained a provision (sec. 1308)
that would require the Secretary of Defense to submit a report
containing an assessment of Cooperative Threat Reduction (CTR)
projects currently under the auspices of the Department of
Defense (DOD) and describing options for transferring
responsibility for CTR projects to other agencies, as
appropriate.
The Senate bill contained a related provision (sec. 1204)
that would require the CTR program to continue to be financed,
managed, and implemented by the DOD.
The House recedes and the Senate recedes.
The Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (NDAA) directed the Secretary to submit a
report similar to that requested in the House provision. The
Secretary has not submitted this report, which was due in
January, 2001. The conferees are aware that the report is
complete. The conferees urge the Secretary to submit the
required report and other required reports on the CTR program,
which are also late, as quickly as possible. The conferees note
that in spite of statutory changes made in the NDAA to the
reporting requirements to accommodate DOD concerns, the DOD
still has not submitted the reports required by law.

Title XIV--Armed Forces Retirement Home

Legislative Provisions Adopted

Amendment of Armed Forces Retirement Home Act of 1991 (sec. 1401)
The Senate bill contained a provision (sec. 1041) that
would revise the Armed Forces Retirement Home Act of 1991 to
implement changes resulting from a Department of Defense review
of the management structure of the Armed Forces Retirement
Home.
The House amendment contained no similar provision.
The House recedes.
The conferees note that the organizational and
operational changes reflected in Title XIV reflect the
collective judgment and recommendations of the Assistant
Secretary of Defense (Force Management Policy), the Vice Chief
of Staff of the Army, the Vice Chief of Naval Operations, the
Vice Chief of Staff of the Air Force, and the Assistant
Commandant of the Marine Corps. The conferees compliment the
determined efforts of all involved in reaching a consensus on
initiatives to be taken. The commitment of the Department of
Defense and the services to the operational efficiency and
fiscal well-being of the Armed Forces Retirement Homes is an
essential precondition for success.
The conferees anticipate that the legislative changes in
Title XIV will be complemented by additional departmental and
service initiatives (e.g., implementation of a fifty cent
increase in the active duty military payroll deduction and
recapitalization of facilities). To this end, the conferees
urge the Committees on Armed Services of the Senate and the
House of Representatives to provide maximum opportunities
during the second session of the 107th Congress for interested
individuals and groups to provide information and
recommendations for additional improvements needed in the
management and organization of the Armed Forces Retirement
Homes.
Definitions (sec. 1402)
The Senate bill contained a provision (sec. 1042) that
would define the terms Retirement Home, Local Board, Armed
Forces Retirement Home Trust Fund, and Fund.
The House amendment contained no similar provision.
The House recedes.
Revision of authority establishing the Armed Forces Retirement Home
(sec. 1403)
The Senate bill contained a provision (sec. 1043) that
would establish the Armed Forces Retirement Home as an
independent establishment of the Executive Branch to provide
residences and related services for certain retired and former
members of the armed forces.
The House amendment contained no similar provision.
The House recedes.
Chief Operating Officer (sec. 1404)
The Senate bill contained a provision (sec. 1044) that
would authorize the Secretary of Defense to appoint a Chief
Operating Officer for the Retirement Home who would be
responsible for the overall direction, operation, and
management of the Armed Forces Retirement Home and who would
report to the Secretary of Defense.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Residents of Retirement Home (sec. 1405)
The Senate bill contained a provision (sec. 1045) that
would repeal the requirement for a resident to reapply for
acceptance as a resident when absent from the home for more
than 45 consecutive days and establish fees to be paid by
residents.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Local boards of trustees (sec. 1406)
The Senate bill contained a provision (sec. 1046) that
would require the Secretary of Defense to appoint a local board
of trustees for each facility of the Armed Forces Retirement
Home to serve in an advisory capacity to the Director of the
facility and to the Chief Operating Officer.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Directors, Deputy Directors, Associate Directors, and staff of
facilities (sec. 1407)
The Senate bill contained a provision (sec. 1047) that
would require the Secretary of Defense to appoint a Director
and a Deputy Director for each facility of the Armed Forces
Retirement Home.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment that would
also require appointment of an Associate Director to serve as
an ombudsman for the residents and to perform other duties
assigned by the Director.
Disposition of effects of deceased persons and unclaimed property (sec.
1408)
The Senate bill contained a provision (sec. 1048) that
would authorize the Director of a facility of the Armed Forces
Retirement Home to designate an attorney who is a full-time
officer or employee of the United States or a member of the
armed forces on active duty to serve as attorney or agent for
the facility in certain probate proceedings.
The House amendment contained no similar provision.
The House recedes.
Transitional provisions (sec. 1409)
The Senate bill contained a transitional provision (sec.
1049) that would authorize the Armed Forces Retirement Home
Board to continue to serve and perform the duties of the Chief
Operating Officer until the Secretary of Defense appoints the
first Chief Operating Officer, and for the temporary
continuation of the Director of the Armed Forces Retirement
Home--Washington and the incumbent Deputy Directors.
The House amendment contained no similar provision.
The House recedes.
Conforming and clerical amendments and repeals of obsolete provisions
(sec. 1410)
The Senate bill contained a provision (sec. 1050) that
would make conforming technical amendments to title 24, United
States Code.
The House amendment contained no similar provision.
The House recedes.

Legislative Provisions Not Adopted

Amendments of other laws
The Senate bill contained a provision (sec. 1051) that
would amend section 4301(2) of title 5, United States Code, to
exclude the Chief Operating Officer and the Deputy Directors of
the Armed Forces Retirement Home from the definition of
employee for purposes of performance appraisals under chapter
43 of title 5, United States Code.
The House amendment contained no similar provision.
The Senate recedes.

Title XV--Activities Relating To Combating Terrorism

Legislative Provisions Adopted

Subtitle A--Increased Funding for Combating Terrorism

Authorization of emergency appropriations under the 2001 Emergency
Supplemental Appropriations Act for Recovering From and
Response to Terrorist Attacks on the United States (secs. 1501-
1506)
The Senate bill contained a provision (sec. 1010) that
would authorize the supplemental appropriations for the
Department of Defense enacted in the Emergency Terrorist
Response Supplemental Appropriations Act, 2001 (Public Law 107-
38), which provided supplemental funding for Department of
Defense programs in response to terrorist attacks against the
United States. The Senate bill would also require quarterly
reports by the Secretary of Defense to the Committees on Armed
Services of the Senate and the House of Representatives on the
use of funds made available to the Department of Defense, as
well as reports on the allocation of funds under that Act that
are made available to the Department of Defense subject to the
15-day notification requirement.
The House amendment contained no similar provision.
The House recedes with an amendment that would: authorize
supplemental appropriations for the Department of Defense and
the national security activities of the Department of Energy,
including the National Nuclear Security Administration, for
combating terrorism for fiscal year 2001 and 2002, including
the use of such appropriations to carry out military
construction projects; and clarify the reporting requirement.
The conferees expect the information provided by the Department
of Defense and the Department of Energy on the use of funds
appropriated in this supplemental, regardless of whether the
funds were available immediately, subject to 15-day
notification, or required subsequent appropriation by Congress,
to be consistent with the level of detail provided for previous
supplementals, including a description of the accounts and
programs for which the funds were used for each service.

Subtitle B--Policy Matters Relating To Combating Terrorism

Study and report on the role of the Department of Defense with respect
to homeland security (sec. 1511)
The Senate bill contained a provision (sec. 1022) that
directed the Secretary of Defense to submit a report to
Congress on the Department of Defense (DOD) policies, plans and
procedures for combating terrorism. The intent of the provision
was to achieve a clear description of the structure, strategy,
roles, relationships and responsibilities of the various DOD
entities with responsibilities relating to combating terrorism.
The report was to serve as the means for the single designated
civilian in the DOD to address the various issues pertaining to
combating terrorism.
The House amendment contained four provisions related to
the Department's role in homeland security or combating
terrorism. One provision (sec. 1032) required the Secretary of
Defense to submit to Congress a report on the appropriate role
of the DOD in homeland security matters. A second House
provision (sec. 1511) required the Secretary of Defense to
submit to Congress and the President a report containing an
assessment of the Department's ability to provide support for
the consequence management activities of other federal, state,
and local agencies, taking into account the terrorist attacks
on the United States on September 11, 2001. A third House
provision (sec. 1512) directed the Secretary of Defense to
report on the ability of the DOD to protect the United States
from airborne threats, including those originating from within
U.S. borders. A fourth House provision (sec. 1514) directed the
Secretary of Defense to seek an agreement with the Directors of
the Federal Bureau of Investigation and Federal Emergency
Management Agency that clarifies the roles and missions of the
DOD Weapons of Mass Destruction-Civil Support Teams (WMD-CSTs)
relative to those agencies in crisis response and consequence
management efforts.
The conferees agreed to merge the four House amendment
provisions into the Senate bill provision. The conferees direct
the Secretary of Defense to conduct a study on the appropriate
role for the Department of Defense with respect to homeland
security. The study would include a description of the plans,
policies, and procedures of the Department of Defense for
combating terrorism. It would also identify how the DOD will
interact with the Office of Homeland Security, and how
intelligence-sharing efforts of the Department will be
coordinated relative to other federal, state and local
entities. In addition, the report would address the ability of
the DOD to protect the United States from airborne attacks, and
the manner in which the WMD-CSTs interact with lead federal
agencies during crisis response or consequence management
situations. The report will also discuss improvements that
could be made to enhance homeland security and recommended
actions and programs aimed at addressing vulnerabilities.
Combating Terrorism Readiness Initiatives Fund for combatant commands
(sec. 1512)
The Senate bill contained a provision (sec. 1008) that
would codify in title 10, United States Code, the authority and
specific activities to be funded under the Combating Terrorism
Readiness Initiative Fund.
The House amendment contained no similar provision.
The House recedes.
Conveyances of equipment and related materials loaned to state and
local governments as assistance for emergency response to a use
or threatened use of a weapon of mass destruction (sec. 1513)
The Senate bill contained a provision (sec. 1063) that
would require the Department of Defense (DOD) to transfer to
state and local authorities training equipment it has loaned to
them as part of the Domestic Preparedness Program, which was
established in accordance with the Defense Against Weapons of
Mass Destruction Act of 1996 (otherwise known as the Nunn-
Lugar-Domenici Act) (Title XIV of the National Defense
Authorization Act for Fiscal Year 1997).
The equipment was purchased by the Department on behalf
of cities participating in the Domestic Preparedness Program.
That equipment has been permanently retained and maintained on
loan due to the legal prohibition against transferring DOD
property directly to non-Federal Government agencies. As a
result, the Department has been required to inventory, and to
hold some liability for, this equipment. In addition, local
authorities have incurred the additional task of maintaining
records to DOD standards. This one-time transfer was intended
to eliminate the financial cost, labor and liabilities
associated with this equipment so long as it remains DOD
property.
The House amendment contained no similar provision.
The House recedes.
The conferees agree that this is a one-time transfer and
will not set any precedent.
Two-year extension of the Advisory Panel to Assess Domestic Response
Capabilities for Terrorism Involving Weapons of Mass
Destruction (sec. 1514)
The House amendment contained a provision (sec. 1052)
that would amend section 1405 of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 to extend the
Advisory Panel to Assess Domestic Response Capabilities for
Terrorism Involving Weapons of Mass Destruction (WMD) by two
additional years. The life of the panel would thereby be
extended until 2003.
The Senate bill contained no such provision.
The Senate recedes with an amendment to provide
compensation to the members of the panel for the days that they
serve from the enactment of this Act until they complete their
work in 2003.
The conferees recognize that the panel can continue to
provide valuable assessments and recommendations to the Federal
Government in its efforts to improve federal homeland security
efforts. The conferees expect that the panel will study not
only WMD, but also conventional and cyber terrorist threats.

Legislative Provisions Not Adopted

Establishment of combating terrorism as a national security mission
The House amendment contained a provision (sec. 1513)
that would amend section 108(b)(2) of the National Security Act
of 1947 to establish that acts of terrorism are included in the
term ``aggression.''
The Senate bill contained no similar provision.
The House recedes.
The conferees note that there is general agreement that
acts of terrorism are included in the term ``aggression.''

Title XVI--Uniformed Services Voting

Legislative Provisions Adopted

Sense of Congress regarding the importance of voting (sec. 1601)
The Senate bill contained a provision (sec. 571) that
would express the sense of the Senate that each administrator
of a federal, state, or local election should be aware of the
importance of the ability of each uniformed services voter to
exercise the right to vote; that the administrators should
perform their duties with the intent to ensure that each
uniformed services voter receives the utmost consideration and
cooperation when voting; that each valid ballot cast by such a
voter is duly counted; and that all eligible American voters
should have an equal opportunity to cast a vote and to have
that vote counted.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment that would
express a sense of the Congress.
Voting assistance programs (sec. 1602)
The Senate bill contained a provision (sec. 578) that
would require the Secretary of Defense to promulgate
regulations to ensure that each service complies with
directives implementing the Federal Voting Assistance Program
(FVAP) and require the Inspector General of each service to
conduct an annual review of compliance with the FVAP and report
the results to the Department of Defense Inspector General, who
would report annually to Congress.
The House amendment contained a similar provision (sec.
551) that would also establish certain requirements for voting
assistance officers, and require polling of units and ships at
sea regarding the availability of voting materials prior to
congressional elections.
The House recedes with an amendment that would combine
elements of the two provisions.
Guarantee of residency for military personnel (sec. 1603)
The Senate bill contained a provision (sec. 573) that
would provide that for purposes of voting in any federal, state
or local election, a person absent from a state pursuant to
military orders would not, solely by reason of that absence, be
deemed to have: (1) lost a residence or domicile in that state;
(2) acquired a residence or domicile in another state; or (3)
become a resident in or of any other state.
The House amendment contained no similar provision.
The House recedes.
Electronic voting demonstration project (sec. 1604)
The Senate bill contained a provision (sec. 577) that
would require the Department of Defense to conduct an
electronic voting demonstration for absent military voters in
the November, 2002, federal elections.
The House amendment contained a similar provision (sec.
552).
The House recedes with a clarifying amendment.
The conferees are aware of the Department's concern about
having sufficient lead time to prepare for a meaningful
demonstration project in 2002. The conferees encourage the
Department to consider use of commercially available, off-the-
shelf, electronic voting products to expedite preparation for
the 2002 demonstration.
Governors' reports on implementation of recommendations for changes in
state law made under Federal Voting Assistance Program (sec.
1605)
The Senate bill contained a provision (sec. 580) that
would require the chief executive officer of a state to report
on the implementation of a uniformed services voting assistance
legislative recommendation within 90 days of receipt of that
recommendation.
The House amendment contained no similar provision.
The House recedes with a clarifying amendment.
Simplification of voter registration and absentee ballot application
procedures for absent uniformed services and overseas voters
(sec. 1606)
The Senate bill contained a provision (sec. 575) that
would require states to accept and process the official
postcard form as a simultaneous absentee voter register
application and absentee ballot application. The Senate bill
also contained a provision (sec. 576) that would require states
to accept and process a single absentee ballot application from
an absent uniformed services voter or overseas voter for all
general, special, primary, and runoff federal elections
occurring during a year if the application is received not less
than 30 days before the first federal election occurring that
year.
The House amendment contained no similar provision.
The House recedes with an amendment that would combine
the two provisions and require states to provide absentee
ballots for each subsequent federal election during a year only
if the voter requests that the application be considered an
application for each subsequent federal election.
Use of certain Department of Defense facilities as polling places (sec.
1607)
The House amendment contained a provision (sec. 2813)
that would authorize the service secretaries to make buildings
located on military installations and reserve component
facilities available for use as polling places for federal,
state, and local elections.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would permit
use of Department of Defense facilities as polling places if
the facilities were designated as of December 31, 2000, or have
been used since January 1, 1996, as official polling places,
unless local security conditions preclude such use.

Legislative Provisions not Adopted

Extension of registration and balloting rights for absent uniformed
services voters to state and local elections
The Senate bill contained a provision (sec. 574) that
would require states to permit uniformed services voters to use
absentee procedures to register and vote in state and local
elections.
The House amendment contained no similar provision.
The Senate recedes.
Maximization of access of recently separated uniformed service voters
to the polls
The Senate bill contained a provision (sec. 579) that
would require states to accept absentee registration
applications by military personnel before they separate from
the military and that would allow them, after they leave the
military, to vote in any election for which they are properly
registered.
The House amendment contained no similar provision.
The Senate recedes.
Standard for invalidation of ballots cast by absent uniformed services
voters in federal elections
The Senate bill contained a provision (sec. 572) that
would prescribe standards for invalidation of ballots cast by
absent uniformed services voters in federal elections.
The House amendment contained no similar provision.
The Senate recedes.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Overview
The budget request for fiscal year 2002 requested
authorization of appropriations of $9,971.3 million for the
military construction and family housing construction and
operation accounts of the Department of Defense.
The Senate bill would authorize $10,430.5 million for
military construction and family housing.
The House amendment would authorize $10,324.7 million for
these accounts.
The conferees recommend authorization of appropriations
of $10,681.3 million for the military construction and family
housing accounts of the Department of Defense for fiscal year
2002. Including the impact of reductions in the authorization
of appropriations for military construction for prior years
made in this Act, and of the rescission of military
construction appropriations for prior years for foreign
currency savings and for a Forward Operating Location in Aruba
contained in the Military Construction Appropriations Act, 2002
(Public Law 107-64), the conference agreement is consistent
with a budget authority level of $10,500.0 million for military
construction and family housing.
The following tables list the amounts authorized to be
appropriated for the military construction and family housing
accounts, and for each military construction and family housing
project.

Short title; definition (sec. 2001)
The Senate bill contained a provision (sec. 2001) that
would cite Division B of this Act as the Military Construction
Authorization Act for Fiscal Year 2002.
The House amendment contained a similar provision (sec.
2001) that would also define all references in division B to
the Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001.
The Senate recedes.

Title XXI--Army

Overview
The Senate bill would authorize $3,068.3 million for Army
military construction and family housing programs for fiscal
year 2002.
The House amendment would authorize $3,018.1 million for
this purpose.
The conferees recommend authorization of appropriations
of $3,155.6 million for Army military construction and family
housing for fiscal year 2002.
The conferees agree to general reductions of $29.9
million in the Army military construction and military family
housing accounts. The reductions are to be achieved through
savings from favorable bids, reduced overhead costs, and
cancellations due to force structure changes. The general
reductions shall not cancel any military construction
authorized by Title XXI of this Act.
The conference agreement provides the planning and design
funds needed to execute the construction projects authorized by
this Act as well as any planning and design specifically
directed in the House report (H. Rept. 107-194) or the Senate
report (S. Rept. 107-62).

Items of Special Interest

Renovation of Womack Army Medical Center, Fort Bragg, North Carolina
The conferees understand that the Army intends to
renovate the old Womack Army Medical Center at Fort Bragg,
North Carolina, for use as a soldier support center. The
soldier support center would not only provide a convenient one-
stop processing center for soldiers, it would also allow for
the demolition of 87 World War II-era wooden buildings,
resulting in considerable savings in maintenance and utilities.
While the conferees endorse this creative initiative, the
conferees are disappointed that the Secretary of the Army does
not intend to request funding for the project until fiscal year
2007. The conferees urge the Secretary of the Army to
accelerate this important project and upon completion consider
naming the facility for the recently retired former Chairman of
the Joint Chiefs of Staff, General Hugh Shelton.

Legislative Provisions Adopted

Authorized Army construction and land acquisition projects (sec. 2101)
The Senate bill contained a provision (sec. 2101) that
would authorize Army construction projects for fiscal year
2002. The authorized amounts are listed on an installation-by-
installation basis.
The House amendment contained a similar provision (sec.
2101).
The conference agreement includes this provision.
The authorized amounts are listed on an installation-by-
installation basis. The state list of projects contained in
this report provides the binding list of specific projects
authorized at each location.
Family housing (sec. 2102)
The Senate bill included a provision (sec. 2102) that
would authorize new construction and planning and design of
family housing units for the Army for fiscal year 2002. The
authorized amounts are listed on an installation-by-
installation basis.
The House amendment contained a similar provision (sec.
2102).
The conference agreement includes this provision.
The authorized amounts are listed on an installation-by-
installation basis. The state list of projects contained in
this report provides the binding list of specific projects
authorized at each location.
Improvements to military family housing units (sec. 2103)
The Senate bill contained a provision (sec. 2103) that
would authorize improvements to existing units of family
housing for fiscal year 2002.
The House amendment contained a similar provision (sec.
2103).
The conference agreement includes this provision.
Authorization of appropriations, Army (sec. 2104)
The Senate bill contained a provision (sec. 2104) that
would authorize specific appropriations for each line item
contained in the Army's budget for fiscal year 2002. This
section would also provide an overall limit on the amount the
Army may spend on military construction projects.
The House amendment contained a similar provision (sec.
2104).
The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2001
projects (sec. 2105)
The Senate bill contained a provision (sec. 2105) that
would amend the Military Construction Authorization Act for
Fiscal Year 2001 (division B of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001; Public Law 106-
398) to increase the total project authorizations for the
following projects by the following amounts: $4.4 million for a
basic training barracks project at Fort Leonard Wood, Missouri;
$3.0 million for a battle simulation center at Fort Drum, New
York; and $3.0 million for a digital training range at Fort
Hood, Texas.
The House amendment contained a similar provision.
The House recedes with a technical amendment.
Modification of authority to carry out certain fiscal year 2000
projects (sec. 2106)
The conferees agreed to a provision that would amend the
Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65) to cancel the authorization
of appropriations of $36.4 million in section 2014 of that Act
for a project for which the appropriated funds were rescinded
by the Military Construction Appropriations Act, 2002 (Public
Law 107-64). This reduction is made without prejudice. The
conferees understand that funds may be requested for this
project in the future and have agreed to retain the
authorization for this project contained in section 2101 of
that Act.

Title XXII--Navy

Overview
The Senate bill would authorize $2,377.6 million for Navy
military construction and family housing programs for fiscal
year 2002.
The House amendment would authorize $2,393.0 million for
this purpose.
The conferees recommend authorization of appropriations
of $2,366.7 million for Navy military construction and family
housing for fiscal year 2002.
The conferees agree to general reductions of $82.6
million in the Navy military construction and military family
housing accounts. The reductions are to be achieved through
savings from favorable bids, reduction in overhead costs, and
cancellation of projects due to force structure changes. The
general reductions shall not cancel any military construction
authorized by Title XXII of this Act.
The conference agreement provides the planning and design
funds needed to execute the construction projects authorized by
this Act as well as any planning and design specifically
directed in the House report (H. Rept. 107-194) or the Senate
report (S. Rept. 107-62).

Legislative Provisions Adopted

Authorized Navy construction and land acquisition projects (sec. 2201)
The Senate bill contained a provision (sec. 2201) that
would authorize Navy construction projects for fiscal year
2002. The authorized amounts are listed on an installation-by-
installation basis.
The House amendment contained a similar provision (sec.
2201).
The conference agreement includes this provision.
The authorized amounts are listed on an installation-by-
installation basis. The state list of projects contained in
this report provides the binding list of specific projects
authorized at each location.
Family housing (sec. 2202)
The Senate bill contained a provision (sec. 2202) that
would authorize new construction and planning and design of
family housing units for the Navy for fiscal year 2002. The
authorized amounts are listed on an installation-by-
installation basis.
The House amendment contained a similar provision (sec.
2202).
The conference agreement includes this provision.
The authorized amounts are listed on an installation-by-
installation basis. The state list of projects contained in
this report provides the binding list of specific projects
authorized at each location.
Improvements to military family housing units (sec. 2203)
The Senate bill contained a provision (sec. 2203) that
would authorize improvements to existing units of family
housing for fiscal year 2002.
The House amendment contained a similar provision (sec.
2203).
The conference agreement includes this provision and
includes funding for the additional housing improvements
contained in the House amendment.
Authorization of appropriations, Navy (sec. 2204)
The Senate bill contained a provision (sec. 2204) that
would authorize specific appropriations for each line item in
the Navy's budget for fiscal year 2002. This section would also
provide an overall limit on the amount the Navy may spend on
military construction projects.
The House amendment contained a similar provision (sec.
2204).
The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2001
projects (sec. 2205)
The Senate bill contained a provision (sec. 2205) that
would amend section 2201(a) of the Military Construction Act
for Fiscal Year 2001 (division B of Public Law 106-398; 114
Stat. 1654A-395) to correct the funding authorization for the
Naval Shipyard, Bremerton, Puget Sound, Washington, from
$100,740,000 to $102,460,000, and for Naval Station, Bremerton,
Washington, from $11,930,000 to $1,930,000. The provision would
also correct the total funding authorized for construction
projects inside the United States from $811,497,000 to
$803,217,000.
The House amendment contained no similar provision.
The House recedes with an amendment that would increase
the authorization for Industrial Skills Center, Puget Sound
Naval Shipyard from $20,280,000 to $24,000,000. The amendment
would also reduce the fiscal year 2001 authorization of
appropriations for planning and design by $19.6 million to
reflect the rescission of unobligated balances of this amount
in the Military Construction Appropriations Act, 2002 (Public
Law 107-64), and would make certain conforming changes.
Modification of authority to carry out certain fiscal year 2000 project
(sec. 2206)
The Senate bill contained a provision (sec. 2206) that
would amend the Military Construction Authorization Act for
Fiscal Year 2000 (division B of Public Law 106-65) to increase
the total project authorization for the headquarters facility
for the Commander in Chief of the Pacific Fleet at Camp Smith,
Hawaii by $3.0 million.
The House amendment contained a similar provision.
The House recedes.

Title XXIII--Air Force

Overview
The Senate bill would authorize $2,587.8 million for Air
Force military construction and family housing programs for
fiscal year 2002.
The House amendment would authorize $2,526.0 million for
this purpose.
The conferees recommend authorization of appropriations
of $2,573.1 million for Air Force military construction and
family housing for fiscal year 2002.
The conferees agree to general reductions of $48.4
million in the Air Force military construction and military
family housing accounts. The reductions are to be achieved
through savings from favorable bids, reduction in overhead
costs, and cancellation of projects due to force structure
changes. The general reductions shall not cancel any military
construction authorized by Title XXIII of this Act.
The conference agreement provides the planning and design
funds needed to execute the construction projects authorized by
this Act as well as any planning and design specifically
directed in the House report (H. Rept. 107-194) or the Senate
report (S. Rept. 107-62).

Legislative Provisions Adopted

Authorized Air Force construction and land acquisition projects (sec.
2301)
The Senate bill contained a provision (sec. 2301) that
would authorize Air Force construction projects for fiscal year
2002. The authorized amounts are listed on an installation-by-
installation basis.
The House amendment contained a similar provision (sec.
2301).
The conference agreement includes this provision.
The authorized amounts are listed on an installation-by-
installation basis. The state list of projects contained in
this report provides the binding list of specific projects
authorized at each location.
Family housing (sec. 2302)
The Senate bill included a provision (sec. 2302) that
would authorize new construction and planning and design of
family housing units for the Air Force for fiscal year 2002.
The authorized amounts are listed on an installation-by-
installation basis.
The House amendment contained a similar provision (sec.
2302).
The conference agreement includes this provision.
The authorized amounts are listed on an installation-by-
installation basis. The state list of projects contained in
this report provides the binding list of specific projects
authorized at each location.
Improvements to military family housing units (sec. 2303)
The Senate bill contained a provision (sec. 2303) that
would authorize improvements to existing units of family
housing for fiscal year 2002.
The House amendment contained a similar provision (sec.
2303).
The conference agreement includes this provision and
includes funding for the additional housing improvements
contained in the Senate bill and the House amendment.
Authorization of appropriations, Air Force (sec. 2304)
The Senate bill contained a provision (sec. 2304) that
would authorize specific appropriations for each line item in
the Air Force budget for fiscal year 2002. This section would
also provide an overall limit on the amount the Air Force may
spend on military construction projects.
The House amendment contained a similar provision (sec.
2304).
The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2001
projects (sec. 2305)
The Senate bill contained a provision (sec. 2305) that
would amend section 2302(a) of the Military Construction Act
for Fiscal Year 2001 (division B of Public Law 106-398; 114
Stat. 1654A-400) to correct the number of family housing units
authorized for construction at Mountain Home Air Force Base,
Idaho, from 119 units to 46 units.
The House amendment contained a provision (sec. 2305)
that would amend the table in section 2301 of the Military
Construction Authorization Act for Fiscal Year 2001 (division B
of Public Law 106-398) to provide for an increase in the
amounts authorized for military construction at McGuire Air
Force Base, New Jersey.
The House recedes to the Senate provision. The Senate
recedes to the House provision.

Title XXIV--Defense Agencies

Overview
The Senate bill would authorize $905.8 million for
Defense Agencies military construction and family housing
programs for fiscal year 2002, and an additional $592.2 million
for base closure activities.
The House amendment would authorize $885.0 million for
Defense Agencies military construction and family housing
programs and $532.2 million for base closure activities.
The conferees recommend authorization of appropriations
of $848.5 million for Defense Agencies military construction
and family housing for fiscal year 2002. The conferees also
recommend authorization of appropriations of $632.7 million for
base closure activities.
The conferees agree to a general reduction of $17.6
million in the authorization of appropriations for the Defense
Agencies military construction account. The general reduction
is to be achieved through savings from favorable bids and
reductions in overhead costs. The conferees further agree to a
general reduction of $10.0 million in the authorization of
appropriations for planning and design for the chemical
demilitarization program. The reduction to the entire chemical
demilitarization program is based on unobligated prior year
funds. The conferees do not intend this reduction to interfere
with timely compliance with the Chemical Weapons Convention.
The general reductions shall not cancel any military
construction projects authorized by Title XXIV of this Act.
The conference agreement provides the planning and design
funds needed to execute the construction projects authorized by
this Act as well as any planning and design specifically
directed in the House report (H. Rept. 107-194) or the Senate
report (S. Rept. 107-62).

Legislative Provisions Adopted

Authorized Defense Agencies construction and land acquisition projects
(sec. 2401)
The Senate bill contained a provision (sec. 2401) that
would authorize Defense Agencies construction projects for
fiscal year 2002. The authorized amounts are listed on an
installation-by-installation basis.
The House amendment contained a similar provision (sec.
2401).
The conference agreement includes this provision.
The authorized amounts are listed on an installation-by-
installation basis. The state list contained in this report is
intended to be the binding list of the specific projects
authorized at each location.
Energy conservation projects (sec. 2402)
The Senate bill contained a provision (sec. 2402) that
would authorize the Secretary of Defense to carry out energy
conservation projects.
The House amendment contained a similar provision.
The Senate recedes with a technical amendment.
Authorization of appropriations, Defense Agencies (sec. 2403)
The Senate bill contained a provision (sec. 2403) that
would authorize specific appropriations for each line item in
the Defense Agencies' budgets for fiscal year 2002. This
section would also provide an overall limit on the amount the
Defense Agencies may spend on military construction projects.
The House amendment contained a similar provision (sec.
2403).
The conference agreement includes this provision.
Cancellation of authority to carry out certain fiscal year 2001
projects (sec. 2404)
The Senate bill contained a provision (sec. 2404) that
would amend the Military Construction Authorization Act for
Fiscal Year 2001 (division B of Public Law 106-398) to cancel
the project authorizations for four TRICARE Management Agency
medical/dental clinic and support facility projects at Camp
Pendleton, California since the funds authorized in fiscal year
2001 were used for payment of a claim related to the
construction of the Portsmouth Naval Hospital, Virginia. These
projects would be authorized for fiscal year 2002 in section
2403 of this Act.
The House amendment contained a provision (sec. 2404)
that would amend the table in section 2401 of the Military
Construction Authorization Act for Fiscal Year 2001 (division B
of Public Law 106-398) to provide for an increase in the
amounts authorized for construction at Marine Corps Base, Camp
Pendleton, California.
The House recedes with an amendment that would reduce the
fiscal year 2001 project authorization and the authorization of
appropriations for military construction for a national missile
defense system by $55.0 million to reflect the administration's
proposal in the fiscal year 2002 budget to build any facilities
related to ballistic missile defenses with research and
development funds rather than military construction funds.
Modification of authority to carry out certain fiscal year 2000
projects (sec. 2405)
The Senate bill contained a provision (sec. 2406) that
would amend the Military Construction Authorization Act for
Fiscal Year 2000 (division B of Public Law 106-65) to increase
the project authorization for a chemical demilitarization
facility at Blue Grass Army Depot, Kentucky by $47.2 million
and the authorization for a hospital at Fort Wainwright, Alaska
by $82.0 million.
The provision would also cancel the project authorization
for an aircrew water survival training facility at Whidbey
Island Naval Air Station, Washington since the funds authorized
in fiscal year 2000 were used for payment of a claim related to
the construction of the Portsmouth Naval Hospital, Virginia.
This project would be authorized for fiscal year 2002 in
section 2403 of this Act.
The House amendment contained a provision (sec. 2405)
that would amend the table in section 2401 of the Military
Construction Authorization Act for Fiscal Year 2000 (division B
of Public Law 106-65) to provide for an increase in the amounts
authorized for construction at Naval Air Station, Whidbey
Island, Washington and Blue Grass Army Depot, Kentucky.
The House recedes with a technical amendment.
Modification of authority to carry out certain fiscal year 1999 project
(sec. 2406)
The Senate bill contained a provision (sec. 2407) that
would amend the Military Construction Authorization Act for
Fiscal Year 1999 (division B of Public Law 105-261) to increase
the project authorization for a chemical demilitarization
facility at Aberdeen Proving Ground, Maryland by $37.6 million.
The House amendment contained a similar provision.
The Senate recedes.
Modification of authority to carry out certain fiscal year 1995 project
(sec. 2407)
The Senate bill contained a provision (sec. 2408) that
would amend the table in section 2401 of the Military
Construction Authorization Act for Fiscal Year 1995 (division B
of Public Law 103-337; 108 Stat. 3040), as amended, to increase
the funding for Chemical Weapons and Munitions Destruction
facilities at Pine Bluff, Arkansas, by $23.0 million.
The House amendment contained an identical provision.
The conference agreement includes this provision.
Prohibition on expenditures to develop forward operating location on
Aruba (sec. 2408)
The House amendment contained a provision (sec. 2408)
that would prohibit funds appropriated in chapter 3 of title II
of the Emergency Supplemental Appropriations Act, 2000 (Public
Law 106-246) to be used by the Secretary of Defense to develop
any forward operating location of the island of Aruba.
The Senate bill contained no similar provision.
The Senate recedes with a clarifying amendment.

Legislative Provisions Not Adopted

Cancellation of authority to carry out additional fiscal year 2001
project
The Senate bill contained a provision (sec. 2405) that
would reduce the fiscal year 2001 project authorization and the
authorization of appropriations for military construction for a
national missile defense system by $55.0 million to reflect the
administration's proposal in the fiscal year 2002 budget to
build any facilities related to ballistic missile defenses with
research and development funds rather than military
construction funds.
The House amendment contained no similar provision.
The Senate recedes.
The conferees agree to include this reduction in another
provision in this title.

Title XXV--North Atlantic Treaty Organization Security Investment
Program

Overview
The Senate bill, the House amendment, and the conference
agreement would all authorize $162.6 million for the U.S.
contribution to the North Atlantic Treaty Organization (NATO)
Security Investment Program for fiscal year 2002.

Legislative Provisions Adopted

Authorized NATO construction and land acquisition projects (sec. 2501)
The Senate bill contained a provision (sec. 2501) that
would authorize the Secretary of Defense to make contributions
to the North Atlantic Treaty Organization Security Investment
program in an amount equal to the sum of the amount
specifically authorized in section 2502 of the Senate bill and
the amount of recoupment due to the United States for
construction previously financed by the United States.
The House amendment contained an identical provision.
The conference agreement includes this provision.
Authorization of appropriations, NATO (sec. 2502)
The Senate bill contained a provision (sec. 2502) that
would authorize appropriations of $162,600,000 as the United
States contribution to the North Atlantic Treaty Organization
(NATO) Security Investment Program.
The House amendment contained an identical provision.
The conference agreement includes this provision.

Title XXVI--Guard and Reserve Facilities

Overview
The Senate bill would authorize $791.2 million for
military construction and land acquisition for fiscal year 2002
for the Guard and Reserve components.
The House amendment would authorize $807.8 million for
this purpose.
The conferees recommend authorization of appropriations
of $942.0 million for military construction and land
acquisition for fiscal year 2002. Funds are authorized for the
Guard and Reserve Components as follows:

Army National Guard..................................... $393,253,000
Air National Guard...................................... 253,852,000
Army Reserve............................................ 168,969,000
Naval and Marine Corps Reserve.......................... 52,896,000
Air Force Reserve....................................... 73,032,000
--------------------------------------------------------
____________________________________________________
Total........................................... 942,002,000

The conference agreement provides the planning and design
funds needed to execute the construction projects authorized by
this Act, as well as any planning and design specifically
directed in the House report (H. Rept. 107-194) or the Senate
report (S. Rept. 107-62).

Items of Special Interest

Improvement of National Guard infrastructure
The conferees are aware of the pressing problems facing
state National Guard facilities and the general need to improve
aging infrastructure, in particular deteriorated and unsafe
roofs. The conferees note the efforts in certain states, in
particular those of the Oklahoma National Guard, to develop
plans to address this problem. The conferees direct the
Director of the National Guard Bureau to make every effort to
identify the necessary funding sources for roof replacement and
other critical infrastructure improvements to state guard
facilities.
Planning and design, Army National Guard
The report accompanying the House amendment, H.R. 2586,
contained a recommendation that within the amounts authorized
for planning and design for the Air National Guard, the
Secretary of the Air Force execute the following project:
$1,331,000 for a joint headquarters building at McEntire Air
National Guard Base, South Carolina.
The conferees have been notified that the Army National
Guard would be the appropriate lead agency for the construction
of the joint headquarters. Therefore, the conferees agreed to
revise the recommendation of the House report and recommend
that the Secretary of the Army, within authorized amounts for
planning and design, execute the following project: $1,331,000
for a joint headquarters building at McEntire Air National
Guard, Base, South Carolina.

Legislative Provisions Adopted

Authorized guard and reserve construction and land acquisition projects
(sec. 2601)
The Senate bill contained a provision (sec. 2601) that
would authorize appropriations for military construction for
the Guard and Reserve by service component for fiscal year
2002.
The House amendment contained a similar provision (sec.
2601).
The conference agreement includes this provision. The
state list of projects contained in this report provides the
binding list of specific projects authorized at each location.

Title XXVII--Expiration and Extension of Authorizations

Legislative Provisions Adopted

Expiration of authorizations and amounts required to be specified by
law (sec. 2701)
The Senate bill contained a provision (sec. 2701) that
would provide that authorizations for military construction
projects, repair of real property, land acquisition, family
housing projects and facilities, contributions to the North
Atlantic Treaty Organization Security Investment Program, and
guard and reserve projects will expire on October 1, 2004, or
the date of enactment of an Act authorizing funds for military
construction for fiscal year 2005, whichever is later. This
expiration would not apply to authorizations for which
appropriated funds have been obligated before October 1, 2004,
or the date of enactment of an Act authorizing funds for these
projects, whichever is later.
The House amendment contained an identical provision.
The conference agreement includes this provision.
Extension of authorizations of certain fiscal year 1999 projects (sec.
2702)
The Senate bill contained a provision (sec. 2702) that
would extend the authorization for certain fiscal year 1999
military construction projects until October 1, 2002, or the
date of the enactment of the Act authorizing funds for military
construction for fiscal year 2003, whichever is later.
The House amendment contained a similar provision.
The House recedes.
Extension of authorizations of certain fiscal year 1998 projects (sec.
2703)
The Senate bill contained a provision (sec. 2703) that
would extend the authorization for certain fiscal year 1998
military construction projects until October 1, 2002, or the
date of the enactment of the Act authorizing funds for military
construction for fiscal year 2003, whichever is later.
The House amendment contained a similar provision.
The Senate recedes with a technical amendment.
Effective date (sec. 2704)
The Senate bill contained a provision (sec. 2704) that
would provide that Titles XXI, XXII, XXIII, XXIV, XV, and XXVI
of this bill shall take effect on October 1, 2001, or the date
of the enactment of this Act, whichever is later.
The House amendment contained an identical provision.
The conference agreement includes this provision.

Title XXVIII--General Provisions

Items of Special Interest

Remediation of former Fort Ord, California
The conferees are aware that two parcels of land at the
former Fort Ord, California, will be transferred at no cost to
the City of Seaside, California, for the purpose of providing
recreational opportunities for disadvantaged youth, once
environmental remediation of the land is complete. The
conferees understand that the priority has been to transfer the
cleanest parcels on the former Fort Ord first, deferring to the
future the transfer of land possibly contaminated with
unexploded ordnance. Nevertheless, the conferees observe that
Fort Ord was selected for closure more than ten years ago and
are disappointed that parcels such as these, though encumbered
with greater cleanup challenges, are still pending remediation
and transfer. The conferees endorse the intended use of these
parcels and urge the Secretary of the Army to speed the
environmental remediation.

Legislative Provisions Adopted

Subtitle A--Military Construction Program and Military Family Housing
Changes

Increase in thresholds for certain unspecified minor military
construction projects (sec. 2801)
The Senate bill contained a provision (sec. 2801) that
would amend section 2805 of title 10, United States Code to
increase from $500,000 to $750,000 the cost threshold for an
unspecified minor construction project requiring approval by
the service secretary concerned. The provision would further
amend section 2805 to increase the amount the secretary
concerned may spend from appropriated operation and maintenance
amounts for projects intended to correct deficiencies that are
a threat to life, health, or safety from $1.0 million to $1.5
million and for other unspecified minor construction projects
from $500,000 to $750,000.
The House amendment contained a similar provision.
The House recedes.
Exclusion of unforseen environmental hazard remediation from limitation
on authorized cost variations (sec. 2802)
The Senate bill contained a provision (sec. 2802) that
would amend section 2853 of title 10, United States Code, to
exclude the cost associated with unforseen environmental hazard
remediation from the limitation on cost increases in military
construction projects. Costs that could be excluded would
include asbestos removal, radon abatement, lead-based paint
removal or abatement, and any other environmental hazard
remediation required by law that could not be reasonably
anticipated at the time the funding for the project was
approved by the Congress.
The House amendment contained a similar provision.
The Senate recedes with a technical amendment.
Repeal of annual reporting requirement on military construction and
military family housing activities (sec. 2803)
The Senate bill contained a provision (sec. 2803) that
would repeal a statutory requirement for an annual report to
Congress on the status of military construction and family
housing projects and trends in the funding for various aspects
of military construction.
The House amendment contained a similar provision.
The Senate recedes.
Funds for housing allowances of members assigned to military family
housing under alternative authority for acquisition and
improvement of military housing (sec. 2804)
The Senate bill contained a provision (sec. 2805) that
would authorize the Secretary of Defense, to the extent
provided in advance in appropriations acts, during the year in
which a contract is awarded for a family housing privatization
project, to reimburse the Military Personnel appropriations
account from the Family Housing Maintenance and Operations
appropriations the amounts necessary to offset the additional
cost of housing allowances that would be paid as a result of a
housing privatization project. The provision would also make
certain technical changes.
The House amendment contained no similar provision.
The House recedes with a technical amendment.
Extension of alternative authority for acquisition and improvement of
military housing (sec. 2805)
The House amendment contained a provision (sec. 2804)
that would amend section 2885 of title 10, United States Code,
to make permanent the authorities contained in subchapter 169
of title 10, United States Code.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would extend
the authorities contained in subchapter 169 of title 10, United
States Code through December 31, 2012.
Treatment of financing costs as allowable expenses under contracts for
utility services from utility systems conveyed under
privatization initiative (sec. 2806)
The Senate bill contained a provision (sec. 2806) that
would require the Secretary of Defense to determine, within 90
days, whether or not modifying the Federal Acquisition
Regulation (FAR) is advisable so that a contract for utility
services may include terms and conditions that recognize
financing costs as an allowable expense when incurred in the
process of acquiring, operating, renovating, replacing,
upgrading, repairing and expanding the installation utility
system. If within 180 days, the Federal Acquisition Regulatory
Council has not modified the FAR, the Secretary would be
required to submit a report justifying such action.
The House amendment contained no similar provision.
The House recedes with an amendment that would direct the
Secretary of Defense, if he determines that modifying the
Federal Acquisition Regulation is advisable, to request that
the Federal Acquisition Regulatory Council make the appropriate
changes.

Subtitle B--Real Property and Facilities Administration

Use of military installations for certain recreational activities (sec.
2811)
The House amendment contained a provision (sec. 2811)
that would amend section 2671 of title 10, United States Code,
to allow the Secretary of Defense to waive state or territory
fish and game laws to permit hunting, fishing, or trapping on
military installations to promote public safety or morale,
welfare and recreation activities.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would authorize
the Secretary of Defense to waive state or territory fish and
game laws relating to hunting, fishing or trapping if such a
waiver is required for health or safety reasons at military
installations and that would require the Secretary of Defense
to notify state officials 30 days prior to implementing any
such waiver.
Availability of proceeds of sales of Department of Defense property
from certain closed military installations (sec. 2812)
The Senate bill contained a provision (sec. 2811) that
would increase from 50 percent to 100 percent the share of the
proceeds from the sale of surplus Department of Defense
property at closed installations that may be used for
infrastructure maintenance and environmental restoration at
other installations within the service that operated the closed
installation.
The House amendment contained no similar provision.
The House recedes with an amendment that would clarify
that this provision applies to proceeds of property that is
disposed of other than through the base realignment and closure
statutes.
Pilot program to provide additional tools for efficient operation of
military installations (sec. 2813)
The Senate bill contained a provision (sec. 2812) that
would authorize the Secretary of Defense to carry out a pilot
program to determine the potential for increasing the
efficiency and effectiveness of the operation of military
installations. The pilot program would terminate four years
after the date of enactment of this Act.
The provision would permit the Secretary to designate up
to two installations in each military department as
participants in the efficient facilities initiative. The
Secretary would be required to develop a management plan to
carry out the initiative at each designated installation and
submit that plan to the Congress. The Secretary would be
required to identify any statutes or regulations he proposes to
waive under this authority. Such waivers would have to be
enacted into law in subsequent legislation before they would
take effect.
Funds received by the military departments pursuant to
this authority would be deposited in an Installation Efficiency
Project Fund, which could be used to manage capital assets and
provide support services at installations participating in the
initiative.
The House amendment contained no similar provision.
The House recedes with a technical amendment. The
conferees agree that the provisions of section 2461 of title
10, United States Code would apply to any changes to Office of
Management and Budget Circular A-76 that would be proposed
under this authority.
Demonstration program on reduction in long-term facility maintenance
costs (sec. 2814)
The Senate bill contained a provision (sec. 2813) that
would authorize the Secretary of the Army to enter into no more
than three contracts in any fiscal year that would require the
contractor to maintain a facility constructed for the Army for
up to the first five years of operation of that facility and
would include any costs for the performance of such maintenance
in the cost of construction of the project. The demonstration
program would be authorized for fiscal years 2002 through 2006.
The House amendment contained no similar provision.
The House recedes with an amendment that would direct the
Secretary of the Army to submit a report to the congressional
defense committees not later than January 31, 2005.
Base efficiency project at Brooks Air Force Base, Texas (sec. 2815)
The House amendment contained a provision (sec. 2812)
that would amend section 136 of the Military Construction
Appropriations Act, 2001 (division A of Public Law 106-246) to
authorize the Secretary of the Air Force to provide
environmental indemnification to the San Antonio community and
other persons for personal injury or property damage resulting
from environmental contamination resulting from Department of
Defense activities at Brooks Air Force Base. No indemnification
would be provided unless the person or entity making the claim
provided the required documentation. This section would
authorize the Secretary to settle or defend a claim for cases
where the Secretary determines that the Department of Defense
may be required to make indemnification payments.
The House amendment would also amend section 136(m)(9) of
the Military Construction Appropriations Act, 2001, to allow
the Secretary of the Air Force to delegate his authorities to
officials in the Air Force that have not been confirmed by the
Senate.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would allow the
Secretary of the Air Force to further delegate his authorities
and would direct the Secretary of Defense to evaluate the base
efficiency project at Brooks Air Force Base, Texas, and report
to the Congress on whether the effective implementation of this
project requires additional authority for the Secretary of the
Air Force to indemnify the recipients of the property against
claims arising out of Department of Defense activities on the
property prior to disposal. The report would be submitted not
later than March 1, 2002. If the Secretary of Defense
determines that indemnification is appropriate, the report
would include a recommendation on the nature and extent of
additional indemnification the Secretary of Defense recommends
be provided.

Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

Lease Back of Base Closure Property (sec. 2821)
The House amendment contained a provision (sec. 2821)
that would amend the Defense Authorization Amendments and Base
Closure and Realignment Act (Public Law 100-526; section 2687
of title 10, United States Code), which governs the 1988 round
of base closures and the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) which governs the 1991, 1993 and 1995 rounds
of base closures, to authorize the secretary concerned to
transfer real property at a closed or realigned military
installation to the redevelopment authority for the
installation if the redevelopment authority agrees, directly
upon transfer, to lease one or more portions of the property
transferred to the secretary or to the head of another
department or agency of the Federal Government.
Such leases could not exceed 50 years and may not require
rental payments by the United States. This section would permit
the use of the leased property by the same or another
department or agency of the Federal Government if the original
department concerned ceases requiring the use of the lease.
The Senate bill contained a provision (sec. 2911) that
would amend the 1988 base closure authorities to allow payment
to a local redevelopment authority for services provided on
property leased back by the United States. Section 2903 of the
Senate bill contained similar language modifying the 1990 base
closure authorities.
The Senate recedes with an amendment that would authorize
the department and agency concerned to obtain facility services
for the leased property, and common area maintenance for the
redevelopment authority or the redevelopment authority's
assignees, as a provision of the lease, but would require that
contracts for such services be awarded in compliance with
Chapter 137 of title 10, United States Code.

Subtitle D--Land Conveyances

Part I--Army Conveyances

Land conveyance, Whittier-Anchorage Pipeline Tank Farm, Anchorage,
Alaska (sec. 2831)
The House amendment contained a provision (sec. 2835)
that would authorize the Secretary of the Army to convey,
without consideration, two adjoining parcels of real property,
including improvements, of approximately 48 acres and known as
the Whittier-Anchorage Pipeline Tank Farm, to the Port of
Anchorage, an entity of the Municipality of Anchorage, Alaska.
The cost of any survey shall be borne by the recipient of the
real property.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the recipient to pay fair market value for the property, which
could be in cash or in kind, and would authorize the Secretary
to delay the conveyance until the Army has concluded a review
on whether this property would be required to support
deployment of an Interim Brigade Combat Team.
Lease authority, Fort DeRussy, Hawaii (sec. 2832)
The Senate bill contained a provision (sec. 2844) that
would permit the Secretary of the Army to authorize the Army
Morale, Welfare and Recreation Fund to enter into an agreement
for the construction of a parking garage at Fort DeRussy,
Hawaii. The agreement could be in the form of a non-
appropriated fund contract, conditional gift, or other
agreement determined by the fund to be appropriate for the
construction of the garage. The agreement may permit use of the
garage by the general public if the fund determines that it
will be advantageous to the fund. Amounts received by the fund
would be treated as non-appropriated funds, and would accrue to
the benefit of the fund or its component funds.
The House amendment contained a provision (sec. 2833)
that would authorize the Secretary of the Army to enter into a
lease with the City of Honolulu, Hawaii for the purpose of
making available to the City a parcel of real property for the
construction and operation of a parking facility.
The Senate recedes with an amendment that would authorize
the Secretary of the Army to enter into a lease with the City
and County of Honolulu to allow the City and County to
construct and operate a parking facility. The amendment would
also direct that any lease under this section would not be
subject to section 2667 of title 10, United States Code and
that all money rentals from the lease be retained by the
Secretary and credited to an account that supports the
operation and maintenance of Army facilities including Fort
DeRussy. The conferees expect the Secretary to ensure that an
appropriate share of the revenues is applied to support the
activities and facilities at Fort DeRussy.
Modification of land exchange, Rock Island Arsenal, Illinois (sec.
2833)
The House amendment contained a provision (sec. 2831)
that would amend section 2832 of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of Public
Law 106-398) by authorizing the Secretary of the Army to
transfer a parcel of real property of approximately .513 acres
to the City of Moline, Illinois. As consideration for the
transfer, the City would convey to the Secretary a parcel of
real property of approximately .063 acres to construct a new
access ramp for the Rock Island Arsenal, Illinois.
The Senate bill contained no similar provision.
The Senate recedes with a technical amendment.
Land conveyance, Fort Des Moines, Iowa (sec. 2834)
The Senate bill contained a provision (sec. 2829) that
would authorize the Secretary of the Army to convey to Fort Des
Moines Memorial Park, Inc. approximately 4.6 acres located at
the Fort Des Moines United States Army Reserve Center. The
conveyance would be for the purpose of establishing the Fort
Des Moines Memorial Park and Education Center and would require
the recipient to reimburse the Secretary for any costs
associated with the conveyance.
The House amendment contained no similar provision.
The House recedes with an amendment that would make
technical corrections and would clarify that the recipient of
the property would be required to reimburse the Secretary for
any excess costs that result from a request by the recipient
for any environmental assessments or other activities that
result in additional costs to the Army beyond those considered
reasonable and necessary by the Secretary to convey the
property in compliance with existing law.
Modification of land conveyances, Fort Dix, New Jersey (sec. 2835)
The House amendment contained a provision (sec. 2832)
that would amend section 2835 of the Military Construction
Authorization Act for Fiscal Year 1998 (division B of Public
Law 105-85) to authorize the exchange between the Borough of
Wrightstown and the New Hanover Board of Education, without the
consent of the Secretary of the Army, of all or any portion of
the property conveyed so long as the property continues to be
used for economic or educational purposes.
The Senate bill contained no similar provision.
The Senate recedes.
Land conveyance, Engineer Proving Ground, Fort Belvoir, Virginia (sec.
2836)
The Senate bill contained a provision (sec. 2821) that
would authorize the Secretary of the Army to convey to the
Commonwealth of Virginia 11.45 acres located at the Engineer
Proving Ground, Fort Belvoir, Virginia for the purpose of
constructing a portion of Interstate Highway 95 through the
Engineer Proving Ground, and 170 acres for the purpose of
constructing a portion of the Fairfax County Parkway through
the Engineer Proving Ground. The Commonwealth of Virginia would
agree to design and construct that portion of the Fairfax
County Parkway through the Engineer Proving Ground; design, for
eventual construction, the necessary access into the Engineer
Proving Ground; provide utility permits; and provide funding to
replace an existing building located on the property to be
conveyed.
The House amendment contained no similar provision.
The House recedes with a technical amendment.
Land exchange and consolidation, Fort Lewis, Washington (sec. 2837)
The House amendment contained a provision (sec. 2834)
that would authorize the Secretary of the Army to convey two
parcels of real property, with improvements, consisting of
approximately 138 acres at Fort Lewis, Washington, to the
Nisqually Tribe. As consideration for the exchange, the Tribe
shall acquire from Thurston County, Washington several parcels
of real property consisting of approximately 416 acres and
convey fee title to the Secretary. This section would authorize
the Secretary to convey to the Bonneville Power Administration
a right-of-way to permit the Administration to use the real
property at Fort Lewis as a route for the Grand Coulee-Olympia
and Olympia-White River electrical transmission lines. The cost
of any survey would be borne by the recipient of the property.
The Senate bill contained no similar provision.
The Senate recedes.
Land conveyance, Army Reserve Center, Kewaunee, Wisconsin (sec. 2838)
The Senate bill contained a provision (sec. 2832) that
would authorize the Administrator of the General Services
Administration to convey the former Army Reserve Center in
Kewaunee, Wisconsin, to the City of Kewaunee for public use.
The provision includes a 20-year reversionary clause and
directs that, in the event of a reversion of the property, the
property shall be disposed of by public sale.
The House amendment contained no similar provision.
The House recedes with an amendment that would direct
that proceeds received by the United States from the public
sale of the property, in the event that the property reverts to
the United States, would be deposited into the Land and Water
Conservation Fund.

Part II--Navy Conveyances

Transfer of jurisdiction, Centerville Beach Naval Station, Humbolt
County, California (sec. 2841)
The House amendment contained a provision (sec. 2841)
that would authorize the Secretary of the Navy to transfer,
without reimbursement, to the administrative jurisdiction of
the Secretary of the Interior the real property with
improvements consisting of the closed Centerville Beach Naval
Station in Humboldt County, California, for the purpose of
permitting the Secretary of the Interior to manage the real
property as open space or for other public purposes.
The Senate bill contained no similar provision.
The Senate recedes.
Land conveyance, Port of Long Beach, California (sec. 2842)
The conferees agree to include a provision that would
authorize the Secretary of the Navy to convey to the City of
Long Beach, California, up to 11 acres of real property,
including any improvements, comprising part of the Navy Mole
pier at the former Long Beach Naval Complex, Long Beach,
California. In exchange, the City would convey to the Secretary
a parcel of real property of equal size at the same pier that
is acceptable to the Secretary, and would construct suitable
replacement fuel transfer and storage facilities on the
conveyed property as determined necessary by the Secretary. The
Secretary would not be authorized to make the conveyance until
he determines that the City has constructed suitable
replacement facilities and that they are ready for use. The
provision would authorize the Secretary to convey the parcel of
real property and improvements at no cost if he determines
prior to the conveyance that the Department of the Navy does
not require replacement fuel transfer and storage facilities.
Conveyance of Pier, Naval Base, San Diego, California (sec. 2843)
The conferees agree to include a provision that would
authorize the Secretary of the Navy to convey, without
consideration, Pier 11A and associated structures and interests
in underlying land located at Naval Base, San Diego to the San
Diego Aircraft Carrier Museum or its designee. The conveyance
would be contingent upon the recipient obtaining permission
from the State of California or the appropriate political
subdivision to use the property to berth a vessel and operate a
museum for the general public. The recipient of the property
would be required to reimburse the Secretary for any excess
costs that result from a request by the recipient for any
environmental assessments or other activities that result in
additional costs to the Navy beyond those considered reasonable
and necessary by the Secretary to convey the property in
compliance with existing law. Any funds collected by the
Secretary as reimbursement for administrative expenses of the
conveyance would be credited to the appropriation, fund, or
account from which the expenses were paid and would be
available for the same purpose and subject to the same
limitation.
The provision would require that the recipient accept any
liability pertaining to the property's physical condition and
hold the Federal Government harmless from such liability.
Modification of authority for conveyance of Naval Computer and
Telecommunications Station, Cutler, Maine (sec. 2844)
The Senate bill contained a provision (sec. 2822) that
would make certain technical corrections to section 2853(a) of
the Military Construction Act for Fiscal Year 2001 (division B
of Public Law 106-398: 114 Stat. 1654A) to clarify that all or
part of the specified property may be conveyed.
The House amendment contained an identical provision.
The conference agreement includes this provision.
Land transfer and conveyance, Naval Security Group Activity, Winter
Harbor, Maine (sec. 2845)
The Senate bill contained a provision (sec. 2823) that
would authorize the Secretary of the Navy to transfer
administrative jurisdiction of a parcel of real property
consisting of approximately 26 acres located at the former
facilities of the Naval Security Group Activity in Winter
Harbor, Maine to the Secretary of the Interior. The transfer
would be concurrent with the reversion of administrative
jurisdiction of approximately 71 acres from the Secretary of
Navy to the Secretary of Interior.
The provision would also authorize the Secretary of the
Navy to convey for public benefit purposes to the State of
Maine, any political subdivision of the State of Maine, or any
tax-supported agency in the State of Maine a parcel of real
property and associated personal property consisting of
approximately 485 acres comprising the facilities of the former
Naval Security Group Activity at Winter Harbor. Prior to the
conveyance of the property, the Secretary of the Navy would be
authorized to lease all or part of the property. The Secretary
would credit any amount received for a lease of real property
to the appropriate account providing funds for the operation
and maintenance of the property or for procurement of
utilities.
The House amendment contained a similar provision (sec.
2845).
The House recedes with an amendment that would make
technical corrections and would require that the proceeds from
any lease be distributed under current law. The amendment would
also clarify that the recipient of the property would be
required to reimburse the Secretary for any excess costs that
result from a request by the recipient for any environmental
assessments or other activities that result in additional costs
to the Navy beyond those considered reasonable and necessary by
the Secretary to convey the property in compliance with
existing law.
Land acquisition, Perquimans County, North Carolina (sec. 2846)
The Senate bill contained a provision (sec. 2831) that
would authorize the Secretary of the Navy to acquire
approximately 240 acres in Perquimans County, North Carolina.
The purpose of the acquisition would be to provide a buffer
zone for the Harvey Point Defense Testing Activity, Hertford,
North Carolina.
The House amendment contained no similar provision.
The House recedes.
Land conveyance, Naval Weapons Industrial Reserve Plant, Toledo, Ohio
(sec. 2847)
The Senate bill contained a provision (sec. 2826) that
would authorize the Secretary of the Navy to convey, without
consideration, to the Toledo-Lucas County Port Authority, Ohio
a parcel of real property consisting of approximately 29 acres
comprising the Naval Industrial Reserve Plant in Toledo, Ohio.
The Secretary would be authorized to convey such facilities,
equipment, fixtures and other personal property located or
based on the parcel that the Secretary considers excess to the
Navy.
The provision would also permit the Secretary to lease
the property to the Port Authority before the conveyance takes
place and would require as conditions of the conveyance that
the Port Authority accept all property in its current condition
at the time of conveyance or lease, and that the property be
used for economic development. The Port Authority would be
authorized to sublease the facility with the prior approval of
the Secretary.
The House amendment contained a similar provision (sec.
2842).
The House recedes with an amendment that would clarify
that the recipient of the property would be required to
reimburse the Secretary for any excess costs that result from a
request by the recipient for any environmental assessments or
other activities that result in additional costs to the Navy
beyond those considered reasonable and necessary by the
Secretary to convey the property in compliance with existing
law.
Modification of land conveyance, former United States Marine Corps Air
Station, Eagle Mountain Lake, Texas (sec. 2848)
The House amendment contained a provision (sec. 2844)
that would amend section 5 of Public Law 85-258, to permit the
Texas Military Facilities Commission to use funds acquired
through the leasing of Eagle Mountain Lake National Guard
Training Site for other Texas National Guard facilities.
The Senate bill contained no similar provision.
The Senate recedes.

Part III--Air Force Conveyances

Conveyance of avigation easements, former Norton Air Force Base,
California (sec. 2851)
The House amendment contained a provision (sec. 2867)
that would direct the Administrator of General Services to
convey to the Inland Valley Development Agency the avigation
easements APN 289-231-08 and APN 289-232-08.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would direct,
as a condition of conveyance, that if the Inland Valley
Development Agency sells one or both easements within 10 years
of conveyance, the Agency shall pay the United States an amount
equal to the lesser of the sale price of the easement or the
fair market value of the easement.
Reexamination of land conveyance, Lowry Air Force Base, Colorado (sec.
2852)
The House amendment contained a provision (sec. 2852)
that would direct the Secretary of the Air Force to reevaluate
the terms and conditions of the pending negotiated sale
agreement at Lowry Air Force Base, Colorado with the Lowry
Redevelopment Authority for certain real property in light of
changed circumstances regarding the property. The reexamination
shall determine whether changed circumstances warrant a
reduction in the amount of consideration otherwise required
under the agreement or other modifications to the agreement.
The Senate bill contained no similar provision.
The Senate recedes.
Water rights conveyance, Andersen Air Force Base, Guam (sec. 2853)
The House amendment contained a provision (sec. 2851)
that would authorize the Secretary of the Air Force to convey
water rights related to the Air Force properties Andy South,
also known as the Andersen Administrative Annex; Marianas Bonis
Base Command; and Andersen Water Supply Annex, also known as
the Tumon Water Well or the Tumon Maui Well, located on Guam.
The Secretary may exercise authority under certain specified
conditions. This section would authorize the Secretary, if he
determines that it is in the best interest of the United States
to transfer title to the water rights and utility system before
a replacement water system is in place, to require that the
United States have the primary right to all water produced from
Andy South and Andersen Water Supply Annex. The Secretary may
authorize the conveyee of the water system to sell to public or
private entities such water from Andersen Air Force Base as the
Secretary determines to be excess to the needs of the United
States.
The Senate bill contained no similar provision.
The Senate recedes.
The conferees expect the Secretary of the Air Force to
follow the reporting requirements of section 2688 of title 10,
United States Code with respect to this conveyance.
Conveyance of segment of Loring Petroleum Pipeline, Maine, and related
easements (sec. 2854)
The Senate bill contained a provision (sec. 2824) that
would authorize the Secretary of the Air Force to convey to the
Loring Development Authority, Maine, a segment of approximately
27 miles of the Loring Petroleum Pipeline, along with related
easements. The provision would require the Loring Development
Authority to reimburse the Secretary for any environmental
assessment, study, analysis or other expenses incurred for the
conveyance.
The House amendment contained no similar provision.
The House recedes with an amendment that would make
technical corrections and would clarify that the recipient of
the property would be required to reimburse the Secretary for
any excess costs that result from a request by the recipient
for any environmental assessments or other activities that
result in additional costs to the Air Force beyond those
considered reasonable and necessary by the Secretary to convey
the property in compliance with existing law.
Land conveyance, petroleum terminal serving former Loring Air Force
Base and Bangor Air National Guard Base, Maine (sec. 2855)
The Senate bill contained a provision (sec. 2825) that
would authorize the Secretary of the Air Force to convey to the
Maine Port Authority of the State of Maine the petroleum
terminal at Mack Point in Searsport, Maine for the purpose of
economic development. The conveyance may include a parcel of
real property consisting of approximately 20 acres and
comprising a portion of the petroleum terminal and any
additional fuel tanks, other improvements, and equipment
located at the 43-acre parcel located adjacent to the petroleum
terminal and currently leased by the Secretary. The Secretary
could not convey the 43 acres until the lease expires and until
the Secretary completes any environmental remediation required
by law.
As consideration for the conveyance, the Authority would
lease to the Air Force, at no cost for a period of no more than
25 years, approximately one acre that constitutes the Aerospace
Fuels Laboratory. As part of the lease, the Authority would
maintain around the real property a zone free of improvements
or encumbrances. The provision would also require the Authority
to reimburse the Secretary for the costs incurred by the
Secretary for any environmental assessment, study, or analysis,
or for any other expense incurred by the Secretary for the
conveyance.
The House amendment contained no similar provision.
The House recedes with an amendment that would make
technical corrections and would clarify that the recipient of
the property would be required to reimburse the Secretary for
any excess costs that result from a request by the recipient
for any environmental assessments or other activities that
result in additional costs to the Air Force beyond those
considered reasonable and necessary by the Secretary to convey
the property in compliance with existing law.
Land conveyances, certain former Minuteman III ICBM facilities in North
Dakota (sec. 2856)
The Senate bill contained a provision (sec. 2830) that
would authorize the Secretary of the Air Force to convey to the
State Historical Society of North Dakota the launch facility
designated ``November 33'' and the missile alert facility and
launch control center designated ``Oscar O'' located at Grand
Forks Air Force Base, North Dakota. The purpose of the
conveyance would be to establish an historical site. The
provision would direct the Secretary of the Air Force to
consult with the Secretary of Defense and the Secretary of
State to ensure that the conveyance of the site is accomplished
in accordance with applicable treaties.
The House amendment contained no similar provision.
The House recedes with a technical amendment.
Land conveyances, Charleston Air Force Base, South Carolina (sec. 2857)
The Senate bill contained a provision (sec. 2828) that
would authorize the Secretary of the Air Force to convey
approximately 24 acres at Charleston Air Force Base known as
the Air Force Military Family Housing Annex to the City of
North Charleston and the State of South Carolina. The
conveyances would be for the purpose of road construction and
for municipal use.
The House amendment contained no similar provision.
The House recedes.
Transfer of jurisdiction, Mukilteo Tank Farm, Everett, Washington (sec.
2858)
The Senate bill contained a provision (sec. 2827) that
would modify section 2866 of the Military Construction
Authorization Act for Fiscal Year 2001 to direct the Secretary
of the Air Force to transfer approximately 1.1 acres at the
Mukilteo Tank Farm to the administrative jurisdiction of the
Secretary of Commerce for a research center for the National
Marine Fisheries Service. The provision would also make certain
technical corrections and provide certain authorities to the
Secretary of Commerce to exchange the property and would
require the Secretary of Commerce to convey the property to the
Port of Everett after 12 years if it is no longer required.
The House amendment contained no similar provision.
The House recedes with a technical amendment.

Subtitle E--Other Matters

Management of the Presidio of San Francisco (sec. 2861)
The House amendment contained a provision (sec. 2863)
that would amend title I of the Omnibus Parks and Public Lands
Management Act of 1996 (Public Law 104-333) to authorize the
Trust to make available to lease certain housing units to
persons designated by the Secretary of the Army, within the
Presidio of San Francisco, California. The monthly amount
charged by the Trust for the lease of a housing unit, including
utilities and municipal services, shall not exceed the monthly
rate of the basic allowance for housing. This section would
also increase the borrowing authority in section 104 of title I
of division I of the Omnibus Parks and Public Lands Management
Act of 1996 (Public Law 104-333) from $50.0 million to $150.0
million.
The Senate bill contained no similar provision.
The Senate recedes with a technical amendment.
Transfer of jurisdiction for development of Air Force morale, welfare,
and recreation facility, Park City, Utah (sec. 2862)
The House amendment contained a provision (sec. 2861)
that would direct the Secretary of the Interior to transfer,
without reimbursement, administrative jurisdiction of a parcel
of real property, including improvements, consisting of
approximately 35 acres located in Park City, Utah to the
Secretary of the Air Force. The transfer would be completed not
later than one year after the date of the enactment of this
Act.
The House amendment would authorize the Secretary of the
Air Force to use the real property as the location for an armed
forces recreation facility to be developed using non-
appropriated funds. In lieu of developing the recreation
facility on this site, the Secretary of the Air Force could
convey or lease the property to other entities in exchange for
other property that would be used as the site for the
recreation facility, and could lease the property selected as
the site for the recreation facility to another entity or enter
into a contract with another entity for the construction and
operation of the recreation facility as a mixed military and
commercial facility.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would
authorize, rather than require, the Secretary of the Interior
to transfer the property, that would exclude lands south of
state Highway 248 that may be contaminated from the transfer,
and would also provide that the property be transferred to
allow for the development of an Air Force morale, welfare and
recreation facility rather than an armed forces recreation
facility.
The conferees direct the Secretary of the Air Force to
ensure that any morale, welfare and recreation facility
constructed under the authority of this section be operated
primarily for the benefit of military personnel and their
families.
Alternative site for United States Air Force Memorial, preservation of
open space on Arlington Ridge Tract, and related land transfer
at Arlington National Cemetery, Virginia (sec. 2863)
The House amendment contained a provision (sec. 2862)
that would require the Secretary of Defense to offer to the Air
Force Memorial Foundation an option to use, without
reimbursement, up to three acres of the Arlington Naval Annex
as the site for the construction of the Air Force Memorial.
Within 90 days after the date on which the Secretary of Defense
makes the offer, the Foundation would provide written notice to
the Secretary of the decision of the Foundation to accept or
decline the offer. If the Foundation accepted the offer, the
Foundation would relinquish all claims to the previously
approved site for the memorial on Arlington Ridge. If the
Foundation declined the offer, the Foundation could resume its
efforts to construct the memorial on the Arlington Ridge tract.
Not later than two years after the date on which the Foundation
accepted the offer, and had made sufficient funds available to
construct the memorial, the Secretary, in coordination with the
Foundation, would remove all structures and prepare the
Arlington Naval Annex site for construction of the memorial.
Upon removal of structures and preparation of the property for
use, the Secretary of Defense would permit the Foundation to
commence construction.
The House amendment would direct the Secretary of the
Interior to transfer, without reimbursement, to the Secretary
of the Army administrative jurisdiction over: most of an
approximately 24-acre parcel of land within the boundaries of
Arlington National Cemetery known as Section 29 for the purpose
of providing additional land for burial sites; and the
Arlington Ridge tract in order to make up to 15 acres of
additional land available for burial sites. The amendment would
also amend section 2902 of the Military Construction
Authorization Act for Fiscal Year 2000 (division B of Public
Law 106-65) to prohibit consideration of the Arlington Naval
Annex property as a possible site for a national military
museum.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would direct
the Secretary of Defense to make available to the Air Force
Memorial Foundation up to three acres of the Naval Annex
property for use as the location for the Air Force Memorial.
The three acres would be in lieu of the Arlington Ridge tract
and shall be the site of the memorial unless the Secretary of
Defense determines that constructing the Air Force Memorial on
the Naval Annex property is impracticable due to geological
conditions at the site. In the event construction at the Naval
Annex site is impracticable, the location of the memorial would
revert to the Arlington Ridge tract location. If the Foundation
fails to commence construction of the memorial within five
years of the date of enactment of this Act, the Secretary of
Defense may revoke the authority to use the Naval Annex
property for the Air Force Memorial.
The amendment would require, upon notification by the
Foundation that it had accumulated sufficient funds to begin
construction, the Secretary of Defense to demolish and remove
Wing 8 of the Naval Annex and associated facilities and carry
out environmental remediation and such site preparation as the
Secretary agreed to undertake, within two years. The amendment
would also designate the Department of the Army as the
executive agent for finding replacement facilities for the
Ballistic Missile Defense Organization, which currently
occupies the facilities on this site.
The amendment would direct the Secretary of the Interior
to transfer to the administrative jurisdiction of the Secretary
of the Army 12 acres, known as the interment zone, as depicted
in Map VI-4 on page VI-23 of the Concept Utilization Plan for
Arlington National Cemetery dated October 2000. The transferred
property would be used by Arlington National Cemetery for
additional burial sites. The Secretary of the Interior would be
required to preserve in perpetuity the remaining acreage of
Section 29, including the portion known as the preservation
zone, as an appropriate backdrop and aesthetic setting for
Arlington House, The Robert E. Lee Memorial.
The amendment would also prohibit any new structures on
the Arlington Ridge tract and would specify that the only other
land use to be contemplated in the future for this site would
be as additional burial space for Arlington National Cemetery.
The amendment would also amend section 2881 of the
Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65) to direct the Secretary of
Defense to reserve no more than four acres of the Naval Annex
property, south of Columbia Pike, as a site for memorials or
museums that the Secretary of Defense considers compatible with
Arlington Cemetery and the Air Force Memorial.
The conferees direct the Secretary of Defense to provide
a report to Congress, prior to the date on which he transfers
the three-acre parcel on the Naval Annex site to the Secretary
of the Army, providing his determination as to whether
construction of the Air Force Memorial on this site, together
with the public access required for the Memorial, is consistent
with the security requirements of the Pentagon and the Naval
Annex. If the Secretary determines this location is not fully
consistent with such security requirements, the Secretary shall
include in his recommendations the steps that should be taken
to address any security concerns.
Establishment of memorial to victims of terrorist attack on Pentagon
Reservation and authority to accept monetary contributions for
memorial and repair of Pentagon (sec. 2864)
The Senate bill contained a provision (sec. 2845) that
would authorize the Secretary of Defense to accept monetary
contributions made for the purpose of establishing a memorial
or assisting in repair and reconstruction of the Pentagon
Reservation following the terrorist attack that occurred on
September 11, 2001. The funds would be deposited in the
Pentagon Reservation Maintenance Revolving Fund.
The House amendment contained a provision (sec. 1055)
that would authorize the Secretary of Defense to accept
monetary contributions to finance the repair and reconstruction
of the Pentagon Reservation following the terrorist attack that
occurred on September 11, 2001. The funds would be deposited in
the Pentagon Reservation Maintenance Revolving Fund.
The House recedes with an amendment that would authorize
the Secretary of Defense to establish the memorial and would
direct that contributions received could be used only for
establishing a memorial or to repair the damage to the Pentagon
Reservation caused by the terrorist attack.
Repeal of limitation on cost of renovation of Pentagon Reservation
(sec. 2865)
The Senate bill contained a provision (sec. 2842) that
would repeal section 2864 of the Military Construction
Authorization Act for Fiscal Year 1997 (division B of Public
Law 104-210;110 Stat. 2806) limiting the cost of renovating the
Pentagon Reservation to $1.1 billion.
The House amendment contained no similar provision.
The House recedes.
Development of United States Army Heritage and Education Center at
Carlisle Barracks, Pennsylvania (sec. 2866)
The Senate bill contained a provision (sec. 2841) that
would authorize the Secretary of the Army to enter into a
partnership with the Military Heritage Foundation for the
design, construction and operation of a U.S. Army Heritage and
Education Center at Carlisle Barracks, Pennsylvania. The
facility would provide research facilities, classrooms, offices
and associated activities for the study and storage of
artifacts. The Secretary would be authorized to accept funds
from the Heritage Foundation for the design and construction of
the U.S. Army Heritage and Education Center or to permit the
Military Heritage Foundation to contract for the design and
construction of the facility. The facility would become the
property of the Department of the Army upon the satisfaction of
any and all financial obligations incurred by the Military
Heritage Foundation. The provision would also authorize the
Commandant of the U.S. Army War College, under regulations
prescribed by the Secretary, to accept gifts for the benefit of
the United States Army Heritage and Education Center.
The House amendment contained no similar provision.
The House recedes with an amendment that would clarify
that the design of the facility must be approved by the
Secretary whether the facility is constructed by the Army or by
the Foundation.
Effect of limitation on construction of roads or highways, Marine Corps
Base, Camp Pendleton, California (sec. 2867)
The House amendment contained a provision (sec. 2864)
that would amend section 2851 of the Military Construction
Authorization Act for Fiscal Year 1999 (division B of Public
Law 105-261), as amended, by authorizing limitations of State
law enacted after January 1, 2001 that directly or indirectly
prohibit or restrict the construction or approval of a road or
highway within the easements granted under this section at
Marine Corps Base, Camp Pendleton, California.
The Senate bill contained no similar provision.
The Senate recedes with a technical amendment.
Establishment of World War II Memorial at additional location on Guam
(sec. 2868)
The House amendment contained a provision (sec. 2865)
that would amend section 2886 of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of Public
Law 106-398) by authorizing the establishment of an additional
World War II Memorial on federal lands near Yigo, Guam.
The Senate bill contained no similar provision.
The Senate recedes.
The conferees expect that in establishing the additional
memorial, the Secretary of Defense shall apply the same minimal
maintenance criteria as required in the previous authorization.
Demonstration project for purchase of fire, security, police, public
works, and utility services from local government agencies
(sec. 2869)
The House amendment contained a provision (sec. 2866)
that would amend section 816 of the National Defense
Authorization Act for Fiscal Year 1995, as amended by section
2873 of the Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999, to extend the authority for the purchase
of services from local government agencies at Monterey,
California authorized under this project, other than fire-
fighting and police services, through fiscal year 2003.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would extend
the authority for the purchase of fire-fighting and police
services through January 31, 2002, and would extend the
authority for the purchase of other services, including
utilities and public works, through fiscal year 2003.
Report on future land needs of United States Military Academy, New
York, and adjacent community (sec. 2870)
The House amendment contained a provision (sec. 2868)
that would direct the Secretary of the Army to submit to the
Congress not later than February 1, 2002, a report evaluating
various options by which the Secretary may promote economic
development in the Village of Highland Falls, New York.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would direct
the Secretary of the Army to assess the land requirements of
the United States Military Academy and determine if any excess
real property is available for either transfer or lease to the
Village of Highland Falls. The Secretary would be required to
report his findings to the Congress by February 1, 2002.
Naming of Patricia C. Lamar Army National Guard Readiness Center,
Oxford, Mississippi (sec. 2871)
The Senate bill contained a provision (sec. 2843) that
would name the Oxford Army National Guard Readiness Center as
the Patricia C. Lamar Army National Guard Readiness Center.
The House amendment contained no similar provision.
The House recedes with a technical amendment.

Legislative Provisions Not Adopted

Authority available for lease of property and facilities under
alternative authority for acquisition and improvement of
military housing
The Senate bill contained a provision (sec. 2804) that
would amend the authorities for lease or conveyance of property
in connection with military family housing privatization to
allow the military departments to use the authorities contained
in section 2667 of title 10, United States Code. This provision
would provide additional flexibility for the military
departments to make use of the value of assets at one
installation for use at privatization projects at other
installations.
The House amendment contained no similar provision.
The Senate recedes.
The conferees urge the Secretary of Defense to explore
innovative approaches to maximize the Department's fiscal and
real property resources in executing the housing privatization
projects.
Land conveyance, Defense Fuel Support Point, Lynn Haven, Florida
The House amendment contained a provision (sec. 2853)
that would authorize the Secretary of the Air Force to convey
to Florida State University approximately 200 acres located at
the Defense Fuel Support Point, Lynn Haven, Florida. The
purpose of the conveyance would be to establish a National
Coastal Research Center.
The Senate bill contained no similar provision.
The House recedes.
Payment for certain services provided by redevelopment authorities for
property leased back by the United States
The Senate bill contained a provision (sec. 2911) that
would amend the Defense Authorization Amendments and Base
Closure and Realignment Act (Public Law 100-526; section 2687
of title 10, United States Code) that governs the 1988 round of
base closures to authorize the secretary concerned to transfer
real property at a closed or realigned military installation to
the redevelopment authority for the installation, if the
redevelopment authority agrees, directly upon transfer, to
lease one or more portions of the property transferred to the
secretary concerned or to the head of another department or
agency of the Federal Government. The provision would also
allow the United States to pay the redevelopment authority for
facility services and common area maintenance.
The House amendment contained a similar provision (sec.
2821) that would amend both the Defense Authorization
Amendments and Base Closure and Realignment Act and the Defense
Base Closure and Realignment Act of 1990 (part A of title XXIX
of Public Law 101-510; 10 U.S.C. 2687 note) that governs the
1991, 1993 and 1995 rounds of base closures to provide these
authorities.
The Senate recedes.
The conferees agreed to include the amendments to both
the 1998 and 1990 base closure laws in a single provision
elsewhere in this Act.
Treatment of amounts received
The Senate bill contained a provision (sec. 2833) that
would require any proceeds received from the sale of a former
Army Reserve Center in Kewaunee, Wisconsin that would be
authorized to be conveyed by section 2832 of the Senate bill to
be deposited into the Land and Water Conservation Fund in the
event the property reverted to the United States.
The House amendment contained no similar provision.
The Senate recedes. The conferees agreed to include this
condition in the provision authorizing the conveyance of the
property in Kewaunee, Wisconsin that is included in title
XXVIII of this Act.

Title XXIX--Fort Irwin Military Land Withdrawal

The House amendment contained a series of provisions
(secs. 2901-2913) that would provide for the withdrawal of
110,000 acres to support the expansion of the National Training
Center (NTC) at Fort Irwin, California.
The Senate bill contained no similar provision.
The Senate recedes with an amendment to the provision
regarding environmental compliance agreements (sec. 2906) as
described below.
Short title (sec. 2901)
This provision would designate title XXIX of this Act as
the ``Fort Irwin Military Land Withdrawal Act of 2001.''
Withdrawal and reservation of lands for National Training Center (sec.
2902)
This provision would withdraw approximately 110,000 acres
of public lands in San Bernardino County, California from
general land laws and would transfer jurisdiction of these
lands to the Secretary of the Army for military testing,
training, and other defense-related purposes at the NTC.
Map and legal description (sec. 2903)
This provision would require the Secretary of the
Interior to publish in the Federal Register the legal
description of the lands withdrawn and reserved by this title
and to file a map and legal description of such lands with the
Committee on Energy and Natural Resources of the Senate and the
Committee on Resources of the House of Representatives. These
documents would also be available for public inspection. The
Secretary of the Army would be required to reimburse the
Secretary of the Interior for costs related to the
implementation of this provision.
Management of withdrawn and reserved lands (sec. 2904)
This provision would require the Secretary of the Army,
during the period of the withdrawal and reservation, to manage
such lands for the training and testing purposes specified in
section 2902. However, military use of the lands that result in
ground disturbances would be prohibited until the Secretary of
the Army and the Secretary of the Interior certify to Congress
that there has been full compliance with this title, the
Endangered Species Act of 1973 (16 U.S.C 1531 et seq.), the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), and other applicable laws. The Secretary of the Army
would be authorized to restrict public access on the withdrawn
lands. The provision would also require the Secretary of the
Army to prepare and implement an integrated natural resource
management plan for the withdrawn lands, in accordance with the
Sikes Act (16 U.S.C. 670 et seq.), and to consult with the
National Aeronautics and Space Administration (NASA) regarding
potential disruptions to NASA operations.
Water rights (sec. 2905)
This provision would clarify that this title does not
create any water rights for the United States on the withdrawn
lands. The provision would not affect any water rights acquired
or reserved by the United States before the date of enactment
of this Act.
Environmental compliance and environmental response requirements (sec.
2906)
The conferees agreed to a provision that would require,
rather than permit, the Secretary of the Army and the Secretary
of the Interior to enter into such agreements as are necessary,
appropriate, and in the public interest to carry out the
purposes of this title. Such agreements should provide that the
Secretary of the Army consult with the Secretary of the
Interior with respect to proposed and final response actions.
Such agreements should also provide that the Secretary of the
Army reimburse the Secretary of the Interior for any costs
incurred by the Secretary of the Interior as a result of the
Army's activities on the withdrawn and reserved lands.
West Mojave Coordinated Management Plan (sec. 2907)
This provision would urge the Secretary of the Interior
to complete the West Mojave Coordinated Management Plan not
later than two years after the date of enactment of this Act.
The Secretary of the Interior would ensure that this plan
considers the impacts of this title. The provision would also
require the Secretary of the Interior to consult with the
Secretary of the Army and the Administrator of the National
Aeronautics and Space Administration on the development of the
plan.
Release of wilderness study areas (sec. 2908)
This provision would determine that the public lands
withdrawn under this title have been adequately studied for
wilderness designation.
Training activity separation from utility corridors (sec. 2909)
This provision would require that all military ground
activity training conducted on withdrawn lands remain at least
500 meters from any existing utility system.
Duration of withdrawal and reservation (sec. 2910)
Under this provision, the withdrawal and reservation made
by this title would terminate 25 years after the date of the
enactment of this Act, unless otherwise extended, postponed, or
affected by a delay in the Secretary of the Interior in
accepting jurisdiction.
Extension of initial withdrawal and reservation (sec. 2911)
This provision would require the Secretary of the Army,
no later than three years before the termination of the 25-year
withdrawal, to notify Congress and the Secretary of the
Interior whether the Army has a continuing military need for
the withdrawn lands. If the Secretary of the Army determines
there is a continuing military need, the Secretary of the Army
shall consult with the Secretary of the Interior regarding any
adjustments in the allocation of land management responsibility
and file an application for an extension of the withdrawal and
reservation with the Secretary of the Interior. The provision
would also authorize the Secretary of the Army and the
Secretary of the Interior to submit a legislative proposal to
Congress on the extension of the land withdrawal. The
legislative proposal would be accompanied by an analysis of the
environmental impacts, consistent with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Termination and relinquishment (sec. 2912)
Under this provision, if the Secretary of the Army
determines that there is no continuing military need for any
withdrawn lands during the first 22 years of the withdrawal
period, the Secretary of the Army shall notify the Secretary of
the Interior of the intent to relinquish jurisdiction over such
lands. If the Secretary of the Interior accepts jurisdiction,
the Secretary shall publish in the Federal Register an
appropriate order terminating the withdrawal.
Delegation of Authority (sec. 2913)
This provision would authorize the Secretary of the Army
and the Secretary of the Interior to delegate the functions
necessary to implement this title.

Title XXX--Realignment and Closure of Military Installations and
Preparation of Infrastructure Plan for the Nuclear Weapons Complex

Title XXIX of the Senate bill contained a series of
provisions (secs. 2901-2904) that would extend the authorities
of the Defense Base Closure and Realignment Act of 1990 (part A
of title XXIX of Public Law 101-510, as amended) and authorize
a new base realignment and closure (BRAC) round in 2003.
Section 2901 of the Senate bill would extend the
authorities of the 1990 Act, which expired after the 1995 BRAC
round, to authorize a new BRAC round in 2003 for the Department
of Defense (DOD).
Section 2902 of the Senate bill would establish a
separate account to track the costs and savings of the 2003
round.
Section 2903 of the Senate bill would make substantive
changes in the 1990 Act that would apply to the 2003 round.
This provision would: increase the number of commissioners from
eight to nine; require that the selection criteria emphasize
the military value of installations; require that any selection
criteria relating to the cost or savings of proposed closures
take into account the impact of the closure on other federal
agency operations on that installation; require the Secretary
of Defense to review every type of installation and to take
into account the anticipated need for and availability of
overseas installations in the future; and require the Secretary
to consider any notice from a local government that the
government would approve of the closure of a neighboring
installation.
This section would also: give the commission an
additional 24 hours to provide information received from
certain individuals to the Congress; require that the Secretary
of Defense be given an opportunity to testify before the
commission on changes made by the commission to the Secretary's
recommendations; prohibit privatization in place of closed or
realigned facilities unless it was specifically recommended by
the base closure commission and determined to be the most cost-
effective option; allow payment to a local redevelopment
authority for services provided on property leased back by the
United States; and allow the DOD to pay the difference to the
recipient if the estimated cost to the recipient to clean up a
BRAC site exceeds the value of the property.
Section 2904 of the Senate bill would make technical and
clarifying changes to the 1990 Act.
The House amendment contained no similar provisions.
The House recedes with an amendment that would authorize
an additional BRAC round in 2005 rather than 2003 and make
additional changes to the process authorized under the 1990 Act
for the 2005 round.
Unless specifically changed by the provisions of this
Act, the 2005 BRAC round would operate under the authorities
and requirements of the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510, as
amended).
Procedures for the Department of Defense (secs. 3001-3007)
The conferees agree to authorize a round of base
realignment and closure for the Department of Defense in 2005.
The conference agreement modifies the procedures used in the
1991, 1993 and 1995 rounds as described below.
Recommendations by the Secretary
With respect to the recommendations of the Secretary of
Defense, the conferees have modified the process used in prior
rounds as follows.
The force structure plan submitted by the Secretary of
Defense with the fiscal year 2005 budget would include detailed
information on probable end-strength and force levels for the
military services, including major ground combat units,
combatant vessels and air wings. The Secretary would be
required to review every type of installation and to take into
account the anticipated need for and availability of overseas
installations in the future.
The Secretary would be permitted to submit a revised
force structure plan with the fiscal year 2006 budget.
The Secretary would be required to include with the force
structure plan: an inventory of military installations; a
description of the categories of excess infrastructure; and an
economic analysis of the options for eliminating or reducing
that excess infrastructure, including potential efficiencies
from joint use and tenancy of military installations by more
than one service.
The Secretary would be required to certify, when the
force structure plan and infrastructure inventory are
submitted, whether the need exists for closure or realignment
of additional military installations and, if such need exists,
that a round of such closures and realignments in 2005 would
produce annual net savings within six years. If the Secretary
failed to provide this certification, the process for closure
or realignment of installations under the provisions of this
Act for 2005 would be terminated.
The conferees have specified factors that must be
evaluated and incorporated in the Secretary's final list of
criteria, including the military value of installations for
both the preservation of training areas for traditional
warfighting missions and the preservation of installations for
homeland defense. However, the Secretary is not limited to the
criteria contained in this Act. Any selection criteria relating
to the cost or savings of proposed closures would have to take
into account the impact of the closure on other federal agency
operations on that installation.
The General Accounting Office would be required to submit
to Congress an evaluation of the force structure plan, the
installation inventory and the selection criteria.
Consideration of the Secretary's proposal by the commission
With respect to the proceedings of the commission, the
conferees agree to the following changes.
The number of commissioners for the 2005 round would be
increased from eight to nine.
The commission would have 48 hours rather than 24 hours
to provide information received from certain individuals of the
Department of Defense to the Congress.
Prior to any decision to add an installation not proposed
to be closed or realigned by the Secretary to the list of
installations to be considered for closure or realignment by
the commission, the commission would be required to give the
Secretary 15 days to submit an explanation of why the Secretary
did not propose that installation for closure or realignment. A
decision to add that installation to the list of installations
being considered would then have to be supported by at least
seven commissioners.
The Secretary of Defense would be given an opportunity to
testify before the commission on changes proposed by the
commission to the Secretary's recommendations.
Privatization in place of closed or realigned facilities
would be prohibited unless it was specifically recommended by
the commission and determined to be the most cost-effective
option.
Disposal of property
With respect to the disposal of property from closed or
realigned facilities, the conferees have modified the process
as follows.
The conference agreement would require the Secretary of
Defense to obtain fair market value for economic development
conveyances in most cases, unless the Secretary determines the
circumstances warrant a below-cost or no-cost conveyance.
The conferees agree to allow the Secretary to recommend
that an installation be placed in an inactive or caretaker
status if the Secretary determines that the installation may be
needed in the future for national security purposes, but is not
needed at the present time, or that retention of the
installation by the Department of Defense is otherwise in the
interests of the United States.
The DOD would be authorized to pay to the recipient of
the former DOD property the amount by which the estimated cost
to the recipient to clean up a BRAC site exceeds the value of
the property.
A Department of Defense Closure Account 2005 would be
created to fund the costs of implementing any closures or
realignments from the 2005 round.
Preparation of infrastructure plan for the nuclear weapons complex
(sec. 3008)
The conferees agree to a provision that would require the
Secretary of Energy to develop an infrastructure plan for the
nuclear weapons complex adequate to support the nuclear weapons
stockpile, the Naval Reactor Program and the non-proliferation
and national security activities. In preparing the plan, the
Secretary would take into consideration the Department of
Defense Nuclear Posture Review, any efficiencies and security
benefits of consolidation, and the necessity to have a residual
nuclear weapons production capacity. The provision would
require the Secretary to submit the plan to Congress, along
with any implementing recommendations the Secretary considers
appropriate, including whether to establish a formal process by
which a round of closures and realignments should take place.
Finally, the Secretary would also be required to submit a
legislative proposal if the Secretary determines the need for
additional legislative authority to implement the Secretary's
recommendations.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

Title XXXI--Department of Energy National Security Programs

Overview
Title XXXI authorizes appropriations for the atomic
energy defense activities of the Department of Energy (DOE) for
fiscal year 2002, including: the purchase, construction, and
acquisition of plant and capital equipment; research and
development; nuclear weapons; naval nuclear propulsion;
environmental restoration and waste management; operating
expenses; and other expenses necessary to carry out the
purposes of the Department of Energy Organization Act (Public
Law 95-91). The title would authorize appropriations in six
categories: national nuclear security administration; defense
environmental restoration and waste management; defense
facilities closure projects; defense environmental management
privatization; other defense activities; and defense nuclear
waste disposal.
The budget request for atomic energy defense activities
at the Department of Energy totaled $13.4 billion, a 1.2
percent decrease from the adjusted fiscal year 2001 level. Of
the total amount requested: $5.3 billion would be for weapons
activities; $773.7 million would be for defense nuclear
nonproliferation activities; $688.0 million would be for naval
reactors; $4.5 billion would be for defense environmental
restoration and waste management activities; $1.1 billion would
be for defense facilities closure projects; $141.5 million
would be for defense environmental management privatization;
$527.6 million would be for other defense activities; and
$310.0 million would be for defense nuclear waste disposal.
The conferees agree to authorize $14.1 billion for atomic
energy defense activities at the Department of Energy, an
increase of $721.5 million to the budget request. The conferees
agree to authorize $7.1 billion for the National Nuclear
Security Administration (NNSA), an increase of $344.3 million.
Of the amount authorized for the NNSA: $5.3 billion would be
for weapons activities, an increase of $43.5 million; $688.0
million would be for naval reactors, the same as the budget
request; and $776.9 million would be for defense nuclear
nonproliferation, a $3.2 million increase to the budget
request. The conferees agree to authorize $6.2 billion for
defense environmental management activities, an increase of
$435.2 million. The amount authorized for defense environmental
management would be: $4.9 billion for defense environmental
restoration and waste management, an increase of $393.2
million; $1.1 billion for defense facilities closure projects,
an increase of $30.0 million; $959.7 million for site and
project completion, an increase of $47.7 million; $3.3 billion
for post 2006 completion, an increase of $345.0 million; $216.0
million for science and technology development, an increase of
$20.0 million; $1.3 million for excess facilities, the amount
of the request; $355.8 million for program direction, the
amount of the request; and $153.5 million for defense
environmental management privatization, an increase of $12.0
million. The conferees agree to authorize $499.7 million for
other defense activities, a decrease of $28.0 million. The
amount authorized for other defense activities would include:
$250.4 million for security and emergency operations, a
decrease of $18.8 million; $40.8 million for the office of
intelligence, the amount of the request; $46.0 million for
counterintelligence, a decrease of $0.4 million; $14.9 million
for independent oversight, the amount of the request; $113.3
million for environmental safety and health, a decrease of $1.3
million; $20.0 million for worker and community transition, a
decrease of $4.4 million; $22.0 million for national security
program administration support, a decrease of $3.0 million; and
$2.9 million for the office of hearings and appeals, the amount
of the request. The conferees agree to authorize $280.0 million
for defense nuclear waste disposal, a decrease of $30.0
million.
The following table summarizes the budget request and the
conferees recommendations:

Legislative Provisions Adopted

Subtitle A--National Security Programs Authorizations

National Nuclear Security Administration (sec. 3101)
The budget request included $6.8 billion for activities
of the Department of Energy National Nuclear Security
Administration (NNSA), subject to reductions and offsets.
The Senate bill contained a provision (sec. 3101) that
would authorize $7.4 billion for the activities of the NNSA,
subject to offsets and reductions.
The House amendment contained a similar provision (sec.
3101) that would authorize, after reductions and offsets, $6.9
billion for the activities of the NNSA.
The conferees agree to include a provision that would
authorize, after reductions and offsets, $7.1 billion for the
activities of the NNSA. The amounts authorized for the
individual program lines reflect the full amount authorized for
each program line without the reductions and offsets. The
offsets and reductions are included in paragraphs (1)(E) and
(2)(G) of this provision. The conferees have included the
reduced total amount for the NNSA for convenience only. The
total amount authorized is the sum total of the individual
program lines. The conferees note that each program is
authorized at the full amount reflected in the individual
program line prior to application of reductions and offsets.
The conferees agree to combine the program direction
accounts for weapons activities and nonproliferation and
national security with the funds for the Office of the
Administrator of the NNSA in order to create a single account
reflecting the efforts of the Administrator to have a more
unified NNSA. Not included in this account, however, are the
program direction accounts for the Naval Reactors activities
and the program direction account for the secure transportation
asset.
The conferees also agree to include $200.0 million for a
new account for facilities and infrastructure improvements at
the NNSA sites.
Defense environmental restoration and waste management (sec. 3102)
The budget request included $5.6 billion for
environmental management activities, including defense
facilities closure projects, subject to reductions and offsets.
The Senate bill contained a provision (sec. 3102) that
would authorize, subject to offsets and reductions, $6.0
billion for environmental management activities, including
defense facilities closure projects.
The House amendment contained a similar provision (sec.
3102) that would authorize $4.6 billion for defense
environmental restoration and waste management activities,
after offsets and reductions, but not including closure
projects. An additional $1.0 billion was authorized separately
for closure projects.
The conferees agree to include a provision that would
authorize, after reductions and offsets, $6.0 billion for
defense environmental management activities, including defense
facilities closure projects. The amounts authorized for
individual program lines reflect the full amount authorized for
each program line without the reductions and offsets. The
offsets and reductions are included in subsection (b) of this
provision. The conferees have included the reduced total amount
for convenience only. The total amount authorized is the sum
total of the individual program lines. The conferees note that
each program is authorized at the full amount reflected in the
individual program line prior to application of reductions and
offsets.
Other defense activities (sec. 3103)
The budget request included $538.3 million for other
defense activities, subject to reductions and offsets.
The Senate bill contained a provision (sec. 3103) that
would authorize $512.2 million for other defense activities,
subject to reductions and offsets.
The House amendment contained a provision (sec. 3103)
that would authorize $502.1 million, after reductions and
offsets.
The conferees agree to include a provision that would
authorize, after reductions and offsets, $499.7 million for
other defense activities. The amounts authorized for individual
program lines reflect the full amount authorized for each
program line without the reductions and offsets. The offsets
and reductions are included in subsection (b) of this
provision. The conferees have included the reduced total amount
for convenience only. The total amount authorized is the sum
total of the individual program lines. The conferees note that
each program is authorized at the full amount reflected in the
individual program lines prior to application of reductions and
offsets.
Defense environmental management privatization (sec. 3104)
The budget request included $141.5 million for defense
environmental management privatization projects.
The Senate bill contained a provision (sec. 3104) that
would authorize $157.5 million for defense environmental
management privatization projects.
The House amendment contained a provision (sec. 3104)
that would authorize $126.2 million for defense environmental
management privatization projects.
The conferees agree to authorize $153.5 million for
defense environmental management privatization accounts.
Defense nuclear waste disposal (sec. 3105)
The budget request included $310.0 million for defense
nuclear waste disposal.
The Senate bill contained a provision (sec. 3105) that
would authorize $250.0 million for defense nuclear waste
disposal.
The House amendment contained a provision (sec. 3105)
that would authorize $310.0 million for defense nuclear waste
disposal.
The conferees agree to authorize $280.0 million for
defense nuclear waste disposal.

Subtitle B--Recurring General Provisions

Reprogramming (sec. 3121)
The House amendment contained a provision (sec. 3121)
that would prohibit the reprogramming of funds excess of the
amount authorized for the program until the Secretary of Energy
has notified the congressional defense committees and a period
of 30 days has elapsed after the date on which the notification
is received.
The Senate bill contained a similar provision (sec.
3121).
The Senate recedes with a technical amendment.
The conferees note that this provision significantly
limits the ability of the Department of Energy (DOE) to
reprogram funds and urge the DOE to work with the congressional
defense committees to re-establish an internal reprogramming
process.
Limits on minor construction projects (sec. 3122)
The Senate bill contained a provision (sec. 3122) that
would authorize the Secretary of Energy to carry out minor
construction projects using operation and maintenance funds, or
facilities and infrastructure funds, if the total estimated
cost of the minor construction project does not exceed $5.0
million. In addition, the provision would require the Secretary
to submit an annual report identifying each minor construction
project undertaken during the previous fiscal year.
The House amendment contained a similar provision (sec.
3122) that maintained the description of minor construction
projects as general plant projects and that would require a
cost variance report.
The House recedes with an amendment that would require
the Secretary of Energy to submit immediately a report to the
congressional defense committees when any minor construction
project is revised so that the cost of the project exceeds $5.0
million.
The conferees direct the annual report required by this
section to be submitted with the budget request. The first
report, which would cover fiscal year 2002, should be submitted
with the budget request for fiscal year 2004.
Limits on construction projects (sec. 3123)
The Senate bill contained a provision (sec. 3123) that
would permit any construction project to be initiated and
continued only if the estimated cost for the project does not
exceed 125 percent of the higher of the amount authorized for
the project or the most recent total estimated cost presented
to the Congress as justification for such project. The
Secretary of Energy could not exceed such limits until 30
legislative days after the Secretary submits to the
congressional defense committees a detailed report setting
forth the reasons for the increase. The provision would also
specify that the 125 percent limitation would not apply to
projects estimated to cost under $5.0 million.
The House amendment contained an identical provision
(sec. 3123).
The conference agreement includes this provision.
Fund transfer authority (sec. 3124)
The Senate bill contained a provision (sec. 3124) that
would permit funds authorized by this Act to be transferred to
other agencies of the Federal Government for performance of
work for which funds were authorized and appropriated. The
provision would permit the merger of such transferred funds
with the authorizations of the agency to which they are
transferred. The provision would also limit, to not more than
five percent of the account, the amount of funds authorized by
the Act that may be transferred between authorization accounts
within the Department of Energy.
The House amendment contained an identical provision
(sec. 3124).
The conference agreement includes this provision.
Authority for conceptual and construction design (sec. 3125)
The Senate bill contained a provision (sec. 3125) that
would limit the Secretary of Energy's authority to request
construction funding until the Secretary has completed a
conceptual design. This limitation would apply to construction
projects with a total estimated cost greater than $5.0 million.
If the estimated cost to prepare the construction design
exceeds $600,000, the provision would require the Secretary to
obtain a specific authorization to obligate such funds. If the
estimated cost to prepare a conceptual design exceeds $3.0
million, the provision would further require the Secretary to
submit to Congress a report on each conceptual design completed
under this provision. The provision would also provide an
exception to these requirements in the case of an emergency.
The House amendment contained a similar provision (sec.
3125).
The House recedes with a technical amendment.
Authority for emergency planning, design, and construction activities
(sec. 3126)
The Senate bill contained a provision (sec. 3126) that
would permit the Secretary of Energy to perform planning and
design with funds available to the Department of Energy (DOE)
pursuant to sections 3101-3104 of title XXXI, including those
funds authorized for advanced planning and construction design,
whenever the Secretary determines that the design must proceed
expeditiously to protect the public health and safety, to meet
the needs of national defense, or to protect property.
The House amendment contained a similar provision that
included funds authorized pursuant to sections 3101-3103 of
title XXXI (sec. 3126).
The House recedes.
Funds available for all national security programs of the Department of
Energy (sec. 3127)
The Senate bill contained a provision (sec. 3127) that
would authorize, subject to section 3121 of title XXXI of this
Act, amounts appropriated for management and support activities
and for general plant projects to be made available for use in
connection with all national security programs of the
Department of Energy.
The House amendment contained an identical provision
(sec. 3127).
The conference agreement includes this provision.
Availability of funds (sec. 3128)
The House amendment contained a provision (sec. 3128)
that would authorize amounts appropriated for operating
expenses for plant and capital equipment for the Department of
Energy to remain available until expended. Program direction
funds would remain available until the end of fiscal year 2003.
The Senate bill contained a similar provision but would
make program direction funds available until the end of fiscal
year 2004.
The Senate recedes.
Transfer of defense environmental management funds (sec. 3129)
The Senate bill contained a provision (sec. 3129) that
would provide the manager of each Department of Energy (DOE)
field office with limited authority to transfer up to $5.0
million in fiscal year 2002 defense environmental management
funds from one program or project. The DOE manager could use
this authority to transfer funds outside of the normal
reprogramming process three times in a fiscal year.
The House amendment contained a provision (sec. 3129)
that would provide the manager of the DOE field office
authority to make one transfer per fiscal year.
The House recedes.
The conferees agree that this authority shall not be
aggregated and that each transfer shall not exceed $5.0
million.
Transfer of weapons activities funds (sec. 3130)
The Senate bill contained a provision (sec. 3130) that
would provide the manager of a Department of Energy/National
Nuclear Security Administration (DOE/NNSA) field office with
limited authority to transfer up to $5.0 million in fiscal year
2002 weapons activities funds from one program or project to
another, outside of the normal reprogramming process. The DOE/
NNSA manager could use this authority up to three times per
year.
The House amendment contained a similar provision (sec.
3130) that would provide authority to make one transfer per
year and provide the authority to the contractor operator of
the DOE/NNSA plant or laboratory.
The Senate recedes with an amendment that would provide
the authority to the DOE/NNSA manager to make one transfer per
year.

Subtitle C--Program Authorizations, Restrictions, and Limitations

Consolidation of Nuclear Cities Initiative program with Initiatives for
Proliferation Prevention program (sec. 3131)
The House amendment contained a provision (sec. 3133)
that would consolidate the Nuclear Cities Initiative (NCI)
program and the Initiatives for Proliferation Prevention (IPP)
program under a common management structure by July 1, 2002.
The Senate bill contained no similar provision, but
included language in Senate Report No. 107-62, accompanying S.
1416, that directed the Administrator of the National Nuclear
Security Administration to consolidate the IPP program and the
NCI program under a single management structure.
The Senate recedes with an amendment that would delete
the date.
The conferees agree to include a provision that would
direct the Administrator of the National Nuclear Security
Administration to consolidate the management of the IPP and the
NCI programs under a single management division. The conferees
believe, however, that these two programs should remain
separate, have different funding lines within the division,
retain their individual programmatic requirements as
established by statute and retain separate program managers.
The two managers should report to a single manager. The
conferees note that the Administrator has already begun to
implement this direction.
In order to maintain the two program identities, the
conferees direct the Deputy Administrator for Defense Nuclear
Nonproliferation to submit a plan to the congressional defense
committees 30 days prior to obligating fiscal year 2002 funds,
for each program laying out how each program intends to utilize
fiscal year 2002 funds. Further, the conferees direct the
Deputy Administrator to submit to the congressional defense
committees a program plan for the IPP and the NCI programs that
describes how: (1) the programs will be managed under common
senior management; (2) they will share administrative support;
(3) management improvements will be made for each program; and
(4) greater coordination will be established between the
programs and with the relevant interagency working groups. This
report is due to the congressional defense committees no later
than four months after enactment of the National Defense
Authorization Act for Fiscal Year 2002.
Nuclear Cities Initiative (sec. 3132)
The Senate bill contained a provision (sec. 3133) that
would prohibit the use of funds authorized to be appropriated
after fiscal year 2001 for the Nuclear Cities Initiative (NCI)
from being obligated or expended to expand the NCI program
beyond its current scope until thirty days after the
Administrator of the National Nuclear Security Administration
(NNSA) submits to Congress an agreement on access signed by the
United States and Russia. The provision also requires an annual
report on the NCI program's financial and programmatic
activities.
The House amendment contained no similar provision.
The House recedes.
Limitation on availability of funds for weapons activities for
facilities and infrastructure (sec. 3133)
The Senate bill contained a provision (sec. 3131) that
would direct the Administrator of the National Nuclear Security
Administration (NNSA) to establish criteria for the facilities
and infrastructure projects. The provision would prohibit the
Administrator from obligating or expending more than fifty
percent of the facilities and infrastructure account funds
until he has submitted to the congressional defense committees
the criteria and a list of the projects that will be funded
based on the criteria.
The House amendment contained no similar provision.
The House recedes.
The conferees support this new effort to address a
backlog of deferred maintenance at NNSA sites, but directs the
Administrator to include projects in the fund based on the
objective criteria established.
Limitation on availability of funds for other defense activities for
national security programs administrative support (sec. 3134)
The Senate bill contained a provision (sec. 3132) that
would prevent the Secretary of Energy from using more than $5.0
million of the funds authorized to be appropriated for national
security programs administrative support pursuant to section
3103(a)(8) of this Act until such time as the Secretary submits
the future years nuclear security program required by section
3253 of the National Nuclear Security Act (Title XXXII of
Public Law 106-65) and until the Secretary submits a
justification document for the national security programs
administrative support activities describing the activities to
be carried out with the funds provided.
The House amendment contained no similar provision.
The House recedes with an amendment that would add an
additional condition to be met by the Secretary before
obligating more than $5.0 million of the funds authorized to be
appropriated for this activity. The conferees note that the
report requested of the Secretary on the feasibility of using
an energy savings performance contract mechanism to offset or
possibly cover the cost of a new office building for the
Albuquerque operations office of the Department of Energy (DOE)
has not been submitted. This report was requested in Senate
Report 106-50, the report of the Committee on Armed Services of
the Senate to accompany S. 1059, the National Defense
Authorization Act for Fiscal Year 2000. The amendment would
direct the Secretary to submit this report as the third
prerequisite to spending more than $5.0 million of the funds
authorized.
Termination date of Office of River Protection, Richland, Washington
(sec. 3135)
The House amendment contained a provision (sec. 3131)
that would extend the statutory termination date of the Office
of River Protection from September 30, 2004 to September 30,
2010 or upon determination that continuation of the Office is
no longer necessary to carry out the Department Of Energy
responsibilities under the Hanford Federal Facility Compliance
Agreement, whichever is later.
The Senate bill contained no similar provision.
The Senate recedes.
Support for public education in the vicinity of Los Alamos National
Laboratory, New Mexico (sec. 3136)
The Senate bill contained a provision (sec. 3157) that
would extend the period of time in which the Department of
Energy (DOE) may make contributions to the Los Alamos Education
Foundation and authorizes $6.9 million, the amount contained in
the budget request, to be paid to the Foundation in fiscal year
2002. In addition, the provision would authorize $8.0 million
for the fiscal year 2002 payment to be made from funds
available to the DOE to offset cost of living expenses for
school teachers at the Los Alamos Public Schools. The provision
would also allow the DOE to extend the current contract with
the Los Alamos Public Schools, pursuant to which these funds
are paid, through fiscal year 2004. The provision would also
require the Secretary of Energy to submit a report evaluating
and making recommendations for future payments to the
Foundation and the schools.
The House amendment contained a similar provision (sec.
3135) that would authorize the Secretary of Energy to pay $5.0
million to the Foundation and $8.0 million to the Los Alamos
Public Schools. The provision would allow the DOE to extend the
current contract with the schools through fiscal year 2003. The
provision would also require a report.
The Senate recedes with an amendment that would authorize
a payment of $6.9 million to the Foundation for fiscal year
2002 and that would direct the Secretary to submit the required
report by March 1, 2002.
Reports on achievement of milestones for National Ignition Facility
(sec. 3137)
The Senate bill contained a provision (sec. 3156) that
would direct the Administrator of the National Nuclear Security
Administration to notify the congressional defense committees
when the National Ignition Facility (NIF) achieves each level
one and level two milestone.
The House amendment contained no similar provision.
The House recedes with an amendment that would terminate
the notification requirement at the end of fiscal year 2004.
The conferees have designated the end date of the
reporting obligation to coincide with the date on which the NIF
should achieve first light of the laser.

Subtitle D--Matters Relating to Management of the National Nuclear
Security Administration

Establishment of Principal Deputy Administrator of National Nuclear
Security Administration (sec. 3141)
The Senate bill contained a provision (sec. 3141) that
would establish a Principle Deputy Administrator for nuclear
security at the National Nuclear Security Administration
(NNSA). The new position would be appointed by the President
with the advice and consent of the Senate.
The House amendment contained a similar provision (sec.
3132(a)) that would establish the position and spell out
qualifications for the individual to be appointed to that
position.
The House recedes with an amendment that would require
that the person appointed for the position has extensive
background in organizational management and is well-qualified
to manage the nuclear weapons programs, nonproliferation, and
material disposition programs of the NNSA.
Elimination of requirement that national security laboratories and
nuclear weapons production facilities report to Deputy
Administrator for Defense Programs (sec. 3142)
The Senate bill contained a provision (sec. 3142) that
would amend section 3214 of the National Nuclear Security
Administration Act by striking subsection (c), which directs
the contractor managers and directors of the National Nuclear
Security Administration weapons production plants and national
laboratories to report to the Deputy Administrator for Defense
Programs.
The House amendment contained an identical provision
(sec. 3132(b)).
The conference agreement includes this provision.
Repeal of duplicative provision relating to dual office holding by
personnel of National Nuclear Security Administration (sec.
3143)
The House amendment contained a provision (sec. 3132(c))
that would repeal a duplicative statutory prohibition on the
ability of non-National Nuclear Security Administration (NNSA)
employees of the Department of Energy to serve concurrently in
the NNSA.
The Senate bill contained no similar provision.
The Senate recedes.
Report on adequacy of federal pay and hiring authorities to meet
personnel requirements of National Nuclear Security
Administration (sec. 3144)
The Senate bill contained a provision (sec. 3144) that
would amend section 3241 of the National Nuclear Security
Administration Act to allow the National Nuclear Security
Administration (NNSA) to expand the number of scientific and
technical positions from the current 300 positions to 500
positions.
The House amendment contained no similar provision.
The House recedes with an amendment that would require
the Administrator of the NNSA to prepare a report on what
hiring and pay authorities are available to the NNSA, what
authorities are being used, and what additional authorities are
required.
The conferees believe that the Administrator should work
with the Office of Personnel Management to determine the
appropriate status of all employees in the NNSA. The conferees
are aware that the Administrator would like to convert all
federal employees of the NNSA to an excepted service type
status. The report required should discuss the Administrator's
plans and options for appropriate pay and hiring authorities at
the NNSA.

Subtitle E--Other Matters

Improvements to energy employees occupational illness compensation
program (sec. 3151)
The Senate bill contained a provision (sec. 3151) that
would amend the Energy Employees Occupational Illness
Compensation Program Act of 2000 (EEOICPA) (title XXXVI of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001). These amendments were designed to create greater
parity between certain provisions in the EEOICPA and similar
provisions in the Radiation Employees Compensation Act.
The House amendment contained no similar provision.
The House recedes with an amendment.
The conferees have agreed to include language that would
amend the EEOICPA in several areas, including: revising the
threshold standard for determining if a covered employee has
contracted silicosis; clarifying attorney's fees provisions;
clarifying who qualifies as survivors and their entitlement to
lump-sum benefits not paid to the covered employee; adding a
technical amendment dealing with covered Leukemias; clarifying
the effect of the EEOICPA on tort actions filed both before and
after the EEOICPA date of enactment, and subsequent to the date
of enactment of this Act; and directing the director of the
National Institute for Occupational Safety and Health to
conduct a new study on potential health effects of any residual
contamination at certain facilities.
The provision clarifies that Leukemia, other than chronic
Lymphocytic Leukemia, is covered if the initial occupational
exposure occurred before the age of twenty-one and if the onset
of the Leukemia occurred more than two years after such
exposure. This amendment makes it clear that occupational
exposure received prior to age twenty-one falls within the
purview of the EEOICPA.
The provision amends section 3626(b) of the EEOICPA to
include employees of an atomic energy weapons employer facility
for consideration as a member of the special exposure cohort.
The provision amends section 3627(e)(2)(A) of the EEOICPA
to change the threshold criteria for determining if a covered
employee has silicosis to a 1/0 reading from a 1/1 reading.
This change brings the EEOICPA in line with the Radiation
Exposure Compensation Act (42 U.S.C. 2210 note).
The provision amends sections 3628(e) and 3630(e) of the
EEOICPA to clarify that any compensation payments not made to
covered employees prior to their death shall be paid to
survivors living at the time payment is to be made and to
define who qualifies as survivors for purposes of receiving
such payments. The provision ensures that certain surviving
minor children will receive the benefit owed to the deceased
covered employee. The provision would also repeal paragraph 18
of section 3621 of the EEOICPA, defining survivors.
The provision amends section 3645 of the EEOICPA to
clarify the election of remedies under certain circumstances.
The amendments were included to address the situation where a
tort case for compensation filed prior to October 30, 2000 had
been dismissed, but where the dismissal was not a voluntary
dismissal sought by the plaintiff. Under such a circumstance,
the plaintiff would still be eligible to seek compensation
under EEOICPA if the non-voluntary dismissal occurs prior to
December 31, 2003. The provision would retain, however, the
prohibition that if the tort case has not been involuntarily
dismissed prior to December 31, 2003, the plaintiff would not
be eligible to seek compensation under the EEOICPA unless the
plaintiff voluntarily dismissed the case. The conferees were
primarily concerned that a plaintiff in a previously filed case
that had been involuntarily dismissed prior to December 31,
2003 would not be eligible to seek compensation under the
EEOICPA. Under this provision, this individual would be
eligible to file a claim for compensation. The amendment would,
however, preclude any individual who had filed a tort case
between October 30, 2000 and the date of the enactment of this
Act, from being eligible to receive compensation or benefits
under the EEOICPA unless the case is dismissed by the
individual before the last permissible date. The permissible
date is the later of April 30, 2003 or 30 months after
discovering that the individual has a covered illness that
results from the individual's covered occupational exposure.
In addition, the provision would provide that if the
individual files a tort case after the date of enactment of
this Act, the individual is not eligible for compensation if
there is a final court decision adverse to the plaintiff
rendered prior to the last permissible date for a voluntary
dismissal. The last permissible date for a voluntary dismissal
is the later of April 30, 2003 or 30 months after discovering
that the individual has a covered illness that results from the
individual's covered occupational exposure.
The provision would amend section 3648 of the EEOICPA to
clarify that the two-percent limitation on attorney fees
applies to initial claims for lump-sum compensation and that
the ten- percent limitation on attorney fees applies to
assistance provided with respect to objections to a recommended
decision denying payment of a lump-sum compensation. The
provision would also clarify that the limitations on attorney
fees does not apply to attorney fees for services rendered for
matters not pertaining to or in connection with lump-sum
claims.
Finally, the provision would require the National
Institute for Occupational Safety and Health to conduct a study
in coordination with the Department of Energy (DOE) and the
Department of Labor to determine whether there is any
significant residual contamination at beryllium vendors or
atomic weapons employer facilities that could have caused or
substantially contributed to the cancer or beryllium illness of
a covered employee. An interim report is due 180 days after
enactment of this Act, and the final report is due one year
after the date of enactment.
The conferees are aware of draft regulations promulgated
by the DOE and intended to implement subtitle D of the EEOICPA.
The conferees are concerned that the DOE appears to have
misinterpreted the intent of Congress in this area. Subtitle D
was intended to provide an alternative path to state workers
compensation systems that would rely on the independent
judgment of a physicians panel as to whether a worker's illness
was related to exposure to a toxic substance while working at a
DOE facility. In cases where this independent panel finds that
the illness was related to occupational exposure, the conferees
expect that the DOE will direct its contractors not to contest
the worker's claim in the state proceedings. Subtitle D was
intended to overcome existing procedural barriers within state
workers compensation systems that prevent workers with
occupational illnesses from receiving assistance from these
systems. In implementing subtitle D, the DOE should not re-
impose the same or similar procedural barriers that subtitle D
was designed to remove or overcome.
Department of Energy counterintelligence polygraph program (sec. 3152)
The Senate bill contained a provision (sec. 3152) that
would direct the Secretary of Energy to develop a new interim
polygraph program, and then establish a new permanent polygraph
program. The new permanent program would be established by
regulations issued pursuant to the Administrative Procedures
Act, after the DOE completes the ongoing Polygraph Review. The
provision would also repeal section 3154 of the Department of
Energy Facilities Safeguards, Security and Counterintelligence
Enhancement Act of 1999 (Title XXXI of the National Defense
Authorization Act for Fiscal Year 2000).
The House amendment contained no similar provision.
The House recedes with an amendment that would direct the
Secretary of Energy to establish a new permanent polygraph
program by regulations issued pursuant to the Administrative
Procedures Act. The provision would repeal section 3154 only
after the DOE has implemented the final rule and the Secretary
submits a certification to the congressional defense committees
to that effect.
One-year extension of authority of Department of Energy to pay
voluntary separation incentive payments (sec. 3153)
The Senate bill contained a provision (sec. 3153) that
would amend section 3161(a) of the National Defense
Authorization Act for Fiscal Year 2000 to provide a one-year
extension of the Department of Energy (DOE) authority to make
voluntary separation incentive payments through January 1,
2004.
The House amendment contained no similar provision.
The House recedes with an amendment stating that the
provision may be superceded by an applicable government-wide
statute providing voluntary separation incentive payments.
The conferees note that the administration is seeking
government-wide authority setting uniform standards to be
applied by federal agencies in making voluntary separation
incentive payments. In the event that Congress enacts such a
law, the conferees anticipate that it would supercede this
provision and conform the DOE and Department of Defense
authority to that provided to all federal agencies.
Annual assessment and report on vulnerability of Department of Energy
facilities to terrorist attack (sec. 3154)
The Senate bill contained a provision (sec. 3159) that
would direct the Secretary of Energy to conduct an annual
assessment on the vulnerabilities of Department of Energy (DOE)
facilities to terrorist attack. The report would be due on
January 31 of each year. The first report would be due on
January 31, 2003.
The House amendment contained no similar provision.
The House recedes.
Disposition of surplus defense plutonium at Savannah River Site, Aiken,
South Carolina (sec. 3155)
The House amendment contained a provision (sec. 3134)
that would require the Secretary of Energy to consult with the
Governor of South Carolina on any decisions or plans regarding
the disposition of surplus defense plutonium at the Savannah
River Site and to submit a plan to Congress by February 1,
2002, for the disposal of surplus defense plutonium currently
located at the site, as well as for defense plutonium that may
be shipped to the site in the future. If the plan is not
submitted by February 1, 2002, then no shipments of plutonium
could be made to the Savannah River Site.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary to provide a notice to the congressional defense
committees 30 days before the Secretary shipped any defense
plutonium or defense plutonium materials to the Savannah River
Site. The conferees note that a similar report is required by
the conference report for the Energy and Water Development
Appropriations Act for Fiscal Year 2002 (Public Law 107-66).
The provision would also require the Secretary to prepare
a comprehensive plan for the long-term disposition of defense
plutonium and defense plutonium materials. If the Secretary
should decide not to proceed with the immobilization facility
or the mixed oxide facility, then the Secretary shall include
in the plan required to be submitted on February 1, 2002 a
disposition path for the material.
Modification of date of report of Panel to Assess the Reliability,
Safety, and Security of the United States Nuclear Stockpile
(sec. 3156)
The Senate bill contained a provision (sec. 3155) that
would amend section 3159(d) of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 by extending the
due date for the third report required by that section from
October 1, 2001 to February 1, 2002.
The House amendment contained no similar provision.
The House recedes.

Subtitle F--Rocky Flats National Wildlife Refuge

Rocky Flats National Wildlife Refuge (sec. 3171-3182)
The Senate bill contained a series of provisions (sec.
3171-3181) that would transfer the Department of Energy Rocky
Flats site to the Department of Interior (DOI) to establish the
Rocky Flats National Wildlife Refuge. The transfer would occur
after the DOE has completed the environmental cleanup of the
site.
The House amendment contained no similar provision.
The House recedes with amendments that would clarify the
relationship between the Department of Energy (DOE) and the DOI
and remove the requirement for the DOI to conduct any interim
management activities prior to the transfer of jurisdiction
over Rocky Flats.
This designation will ensure that appropriate land uses
are maintained and that an environmentally sound end state will
result. As cleanup and closure continues, the committee urges
the DOE to consult with the U.S. Fish and Wildlife Service to
ensure a smooth transition from the DOE to the DOI.
Through a Memorandum of Understanding (MOU), the DOE and
the DOI should address any remaining issues related to the
transition, determine how to resolve those issues, and develop
the best path forward for transferring the land. The MOU should
also address longer term relationships between the DOE and the
DOI and address such things as indemnification for any costs
that may result after the transfer.
The provisions would also require that any conflicts
between the two agencies over cleanup activities on the land
retained by the DOE be resolved so that cleanup activities take
priority.
The Act provides that prior to the transfer, the
Environmental Protection Agency must certify that the site is
cleaned up and closed as a DOE facility pursuant to existing
laws, regulations, and agreements. The conferees note that the
State of Colorado has recently passed a new statute concerning
the enforceability of environmental real covenants. Several
federal agencies have raised questions about the applicability
of this provision to federal lands. The conferees do not
attempt to resolve any issues associated with the applicability
of this new Colorado statute and do not intend these provisions
to be interpreted as either supporting or refuting the
applicability of this statute to federal lands, including the
wildlife refuge that would be created in this Act.
While it is expected that most structures will be
demolished when the property is transferred from the DOE to the
Fish and Wildlife Service, any cleanup facilities or structures
related to long-term treatment and control of contamination
that the DOE must maintain and remain liable for will be
excluded from transfer. In addition, the provision also allows
the DOI to designate any buildings that it might need for
managing the refuge.
The Act also anticipates that wastes and materials will
be removed for off-site disposal and that there should not be
any need for a long-term storage facility at the site.
The provision clarifies that these provisions shall not
be interpreted or construed to reduce the required cleanup
levels, and that these levels should reflect a cleanup level
that is fully protective of human health and the environment
for the long-term.
The provisions also require that the refuge shall be
managed in accordance with the National Wildlife Refuge System
Administration Act. Accordingly, the Fish and Wildlife Service
must consult with local communities and ensure public
participation during development of the Rocky Flats Wildlife
Refuge plans. This Act also recognizes and preserves the
existence of other property rights on the Rocky Flats site,
such as mineral rights, water rights, and utility rights-of-way
for all relevant parties. The conferees recognize that the
DOE's top priority at Rocky Flats is safe cleanup and closure,
and strongly support continuation of efforts to achieve the
2006 closure date. The conferees further recognize that the
accelerated cleanup at Rocky Flats and creation of the Wildlife
Refuge has been achieved through strong support and cooperation
from the surrounding communities, the State of Colorado, and
the Colorado Congressional delegation. Creation of the Rocky
Flats National Wildlife Refuge provides an important path
forward for Rocky Flats and a model for other DOE cleanup sites
across the nation.

Legislative Provisions Not Adopted

Additional objective for Department of Energy defense nuclear facility
workforce restructuring plan
The Senate bill contained a provision (sec. 3154) that
would amend section 3161(c) of the National Defense
Authorization Act for Fiscal Year 1993 by adding a new
requirement to the workforce restructuring plan. The new
requirement would direct the Secretary of Energy to provide
assistance to promote the diversification of the economies of
the communities in the vicinity of the Department of Energy
(DOE).
The House amendment contained no similar provision.
The Senate recedes.
The conferees believe that the DOE, in its work with the
Department of Commerce and the Department of Labor in preparing
and carrying out workforce restructuring plans, already looks
at economic diversification as an element of the plan. The
conferees direct the Secretary to continue to promote
diversification of the economies in the vicinity of any DOE
defense nuclear facility that may be affected by a workforce
restructuring and to include in the plan a description of the
steps taken in support of this goal.
Clarification of status within the Department of Energy of
Administration and contractor personnel of the National Nuclear
Security Administration
The Senate bill contained a provision (sec. 3143) that
would amend section 3219 of the National Nuclear Security
Administration Act (Title XXXII of the National Defense Act for
Fiscal Year 2000) to clarify that when work is performed at
National Nuclear Security Administration (NNSA) facilities and
sponsored by offices outside of the NNSA, the sponsoring office
can supervise the work being performed and that NNSA employees
can serve on DOE task forces.
The House amendment contained no similar provision.
The Senate recedes.
The conferees do not include this provision because they
do not believe that the existing law prohibits or limits either
non-NNSA agencies and offices from providing authority
direction and control over programs that they sponsor at NNSA
facilities or NNSA employees from serving as full members of
any DOE task force.
Construction of Department of Energy operations office complex
The Senate bill contained a provision (sec. 3134) that
would authorize the Secretary of Energy to provide for the
design and construction of a new operations office complex for
the Department of Energy (DOE) in accordance with the
feasibility study regarding such operations office complex
conducted under the National Defense Authorization Act for
Fiscal Year 2000. The provision would provide authority to the
Secretary to use one or more energy savings performance (ESP)
contracts, entered into under Title VII of the National Energy
Policy Conservation Act, 42 U.S.C. 8287 et seq., to design and
construct the complex. The provision would require that the
construction and operation costs of the complex be paid from
the energy savings and ancillary operations and maintenance
savings that result from the replacement of a current DOE
operations office complex.
The House amendment contained no similar provision.
The Senate recedes.
Improvements to Corral Hollow Road, Livermore, California
The Senate bill contained a provision (sec. 3158) that
would authorize up to $0.3 million for safety improvements to
Corral Hollow Road, the amount of the budget request.
The House amendment contained no similar provision.
The Senate recedes.
The conferees agree that funds for road improvements that
are for roads not on Department of Energy (DOE) sites should be
specifically requested in the DOE budget request. The conferees
also agree that specific authorization is not required for such
road projects unless the total project cost for the project
exceeds $5.0 million.
Increased amount for nonproliferation and verification
The House amendment contained a provision (sec. 3106)
that would increase the amounts authorized for defense nuclear
nonproliferation by $10.0 million for operation and maintenance
for nonproliferation and verification research and development.
The Senate bill contained no similar provision.
The House recedes.
The conferees have included funds for the defense nuclear
nonproliferation programs in section 3101 of this conference
report.

Title XXXII--Defense Nuclear Facilities Safety Board

Legislative Provisions Adopted

Authorization (sec. 3201)
The Senate bill contained a provision (sec. 3201) that
would authorize $18.5 million for the Defense Nuclear
Facilities Safety Board (DNFSB).
The House amendment contained an identical provision
(sec. 3201).
The conference agreement includes this provision.

Title XXXIII--National Defense Stockpile

Legislative Provisions Adopted

Definitions (sec. 3301)
The House amendment contained a provision (sec. 3301)
that would provide the definitions used in the title.
The Senate bill contained no similar provision.
The Senate recedes.
Authorized uses of stockpile funds (sec. 3302)
The House amendment contained a provision (sec. 3302)
that would authorize $65.2 million from the National Defense
Stockpile Transaction Fund for the operation and maintenance of
the National Defense Stockpile for fiscal year 2002. The
provision would also permit the use of additional funds for
extraordinary or emergency conditions 45 days after a
notification to the Congress.
The Senate bill contained no similar provision.
The Senate recedes.
Authority to dispose of certain materials in National Defense Stockpile
(sec. 3303)
The House amendment contained a provision (sec. 3303)
that would authorize the disposal of specific materials in the
National Defense Stockpile that are no longer needed.
The Senate bill contained an identical provision (sec.
3301).
The conference agreement includes this provision.
Revision of limitations on required disposals of certain materials in
National Defense Stockpile (sec. 3304)
The Senate bill contained a provision (sec. 3302) that
would provide the Secretary of Defense with greater flexibility
in the disposal of materials from the National Defense
Stockpile. The provision would allow the sale of materials over
10 years, based on market conditions, rather than according to
a specific timetable limiting quantities that could be disposed
of in any given year.
The House amendment contained no similar provision.
The House recedes.
Acceleration of required disposal of cobalt in National Defense
Stockpile (sec. 3305)
The House amendment contained a provision (sec. 3304)
that would accelerate by one year the disposal of cobalt from
the National Defense Stockpile that was authorized for sale in
previous authorization acts.
The Senate bill contained a similar provision (sec.
3303).
The House recedes.
Restriction on disposal of manganese ferro (sec. 3306)
The Senate bill contained a provision (sec. 3304) that
would prohibit the sale of manganese ferro from the National
Defense Stockpile during fiscal year 2002.
The House amendment contained no similar provision.
The House recedes with an amendment that would authorize
sales of 25,000 short tons of manganese ferro in fiscal year
2002 (of all grades), 25,000 short tons of high-grade manganese
ferro in fiscal year 2003, and 50,000 short tons of high-grade
manganese ferro in fiscal years 2004 and 2005.

Title XXXIV--Naval Petroleum Reserves

Legislative Provisions Adopted

Authorization of appropriations (sec. 3401)
The House amendment contained a provision (sec. 3401)
that authorized the appropriation of $17.4 million during
fiscal year 2002 for activities relating to the naval petroleum
reserves.
The Senate bill contained a similar provision (sec.
3401).
The Senate recedes.

Title XXXV--Maritime Administration

Legislative Provisions Adopted

Authorization of appropriations for fiscal year 2002 (sec. 3501)
The budget request included $103.0 million for the
Maritime Administration.
The House amendment contained a provision (sec. 3501)
that would authorize an increase of $100.0 million for the
Maritime Administration. Of the funds authorized, $89.1 million
would be for operations and training programs, $100.0 million
would be for the cost as defined in section 402 of the Federal
Credit Reform Act of 1990, of loan guarantees authorized by
title XI of the Merchant Marine Act, 1936, as amended (46 App.
U.S.C. 1271 et seq.), $4.0 million would be for administrative
expenses related to providing those loan guarantees, and $10.0
million would be to dispose of obsolete vessels in the National
Defense Reserve Fleet.
The Senate bill contained no similar provision.
The Senate recedes.
Define ``war risks'' to vessels to include confiscation, expropriation,
nationalization, and deprivation of the vessels (sec. 3502)
The House amendment contained a provision (sec. 3502)
that would clarify and expand the authority of the Maritime
Administration to issue war risk insurance coverage for losses
from hostile acts including confiscation, expropriation,
nationalization, and deprivation.
The Senate bill contained no similar provision.
The Senate recedes.
Holding obligor's cash as collateral under title XI of Merchant Marine
Act, 1936 (sec. 3503)
The House amendment contained a provision (sec. 3503)
that would amend title XI of the Merchant Marine Act, 1936, as
amended, by establishing a new section that would allow the
Maritime Administration to hold and invest cash collateral
derived from title XI proceeds in the U.S. Treasury.
The Senate bill contained no similar provision.
The Senate recedes.

From the Committee on Armed Services, for
consideration of the Senate Bill and the House
amendment, and modifications committed to
conference:
Bob Stump,
Duncan Hunter,
James V. Hansen,
Curt Weldon,
Jim Saxton,
John M. McHugh,
Terry Everett,
Roscoe G. Bartlett,
Howard ``Buck'' McKeon,
J.C. Watts, Jr.,
Mac Thornberry,
Saxby Chambliss,
Ike Skelton,
Solomon P. Ortiz,
Lane Evans,
Neil Abercrombie,
Martin T. Meehan,
Robert A. Underwood,
Thomas Allen,
Vic Snyder,
From the Committee on Education and the
Workforce, for consideration of secs. 304, 305,
1123, 3151, and 3157 of the Senate bill, and
secs. 341, 342, 509, and 584 of the House
amendment, and modifications committed to
conference:
Michael N. Castle,
Johnny Isakson,
George Miller,
From the Committee on Government Reform, for
consideration of secs. 564, 622, 803, 813, 901,
1044, 1047, 1051, 1065, 1075, 1102, 1111-1113,
1124-1126, 2832, 3141, 3144, and 3153 of the
Senate bill, and secs. 333, 519, 588, 802, 803,
811-819, 1101, 1103-1108, 1110, and 3132 of the
House amendment, and modifications committed to
conference:
Dan Burton,
Dave Weldon,
Henry A. Waxman,
Provided that Mr. Tom Davis of Virginia is
appointed in lieu of Mr. Weldon of Florida for
consideration of secs. 803 and 2832 of the
Senate bill, and secs. 333 and 803 of the House
amendment, and modifications committed to
conference:
Tom Davis,
Provided that Mr. Horn is appointed in lieu of
Mr. Weldon of Florida for consideration of
secs. 811-819 of the House amendment, and
modifications committed to conference:
Stephen Horn,
From the Committee on House Administration, for
consideration of secs. 572, 574-577, and 579 of
the Senate bill, and sac. 552 of the House
amendment, and modifications committed to
conference:
Bob Ney,
John L. Mica,
From the Committee on International Relations,
for consideration of secs. 331, 333, 1201-1205,
and 1211-1218 of the Senate bill, and secs.
1011, 1201, 1202, 1205, and 1209, title XIII,
and sec. 3133 of the House amendment, and
modifications committed to conference:
Henry Hyde,
Ben Gilman,
Tom Lantos,
From the Committee on the Judiciary, for
consideration of secs. 821, 1066, and 3151 of
the Senate bill, and secs. 323 and 818 of the
House amendment, and modifications committed to
conference:
F. James Sensenbrenner,
Lamar Smith,
From the Committee on Resources, for
consideration of secs. 601, 663, 2823, and
3171-3181 of the Senate bill, and secs. 601,
1042, 2841, 2845, 2861-2863, and 2865 and title
XXIX of the House amendment, and modifications
committed to conference:
Jim Gibbons,
George Radanovich,
Provided that Mr. Udall of Colorado is
appointed in lieu of Mr. Rahall for
consideration of secs. 3171-3181 of the Senate
bill, and modifications committed to
conference:
Mark Udall,
From the Committee on Science, for
consideration of secs. 1071 and 1124 of the
Senate bill, and modifications committed to
conference:
Sherwood Boehlert,
Nick Smith,
Ralph M. Hall,
Provided that Mr. Ehlers is appointed in lieu
of Mr. Smith of Michigan for consideration of
sec. 1124 of the Senate bill, and modifications
committed to conference:
Vernon J. Ehlers,
From the Committee on Small Business, for
consideration of secs. 822-824 and 1068 of the
Senate bill, and modifications committed to
conference:
Donald A. Manzullo,
Larry Combest,
From the Committee on Transportation and
Infrastructure, for consideration of secs. 563,
601, and 1076 of the Senate bill, and secs.
543, 544, 601, 1049, and 1053 of the House
amendment, and modifications committed to
conference:
Don Young,
Frank A. LoBiondo,
Corrine Brown,
Provided that Mr. Pascrell is appointed in lieu
of Ms. Brown of Florida for consideration of
sec. 1049 of the House amendment, and
modifications committed to conference:
Bill Pascrell, Jr.,
From the Committee on Veterans' Affairs, for
consideration of secs. 538, 539, 573, 651, 717,
and 1064 of the Senate bill, and sec. 641 of
the House amendment, and modifications
committed to conference:
Christopher H. Smith,
(except sec. 641 of House
amendment and secs. 539
and 651 of Senate bill),
Mike Bilirakis,
Managers on the Part of the House.